Apple’s partners in China, both component suppliers and product assemblers, are busy offering big bonuses for new employees.
The reason is that many young people in China are no longer interested in jobs in manufacturing. With the decline in the number of applicants, the competition to find employees is becoming increasingly difficult.
Plus, next September, Apple is expected to release a new product, which means that the production load will also increase.
Foxconn for example, they added a bonus for new employees to 10,200 yuan or USD 1,578 ,. The condition is that new employees cannot resign for at least 90 days.
This bonus is given to new employees who will be placed in the integrated Digital Products Business Group (iDPBG), which is the iPhone assembly division at Foxconn. Currently, about 80% of iPhones on the market are installed by Foxconn.
The bonus is slightly higher than July 23, when Foxconn gave 10,000 yuan to new employees.
Oh yes, not all this money is given to new employees, only 9,500 yuan. While the remaining 700 yuan is given to people referring new employees.
Foxconn isn’t the only Apple partner in China looking for new employees. There’s also Lens Technology, Apple’s touchscreen provider, and Luxshare Precision, which is looking for new employees with similar incentive tactics.
Lens Technology for example, they plan to recruit 5,000 employees for the production line and 2,000 people to check product quality. They increased bonuses for new employees from 5,000 yuan in February to 10,000 yuan in May. Bonuses will be given to new employees who work more than 20 days a month for seven consecutive months.
This increase in the number of employees is done to be able to meet the total production of new iPhones. According to Dan Ives, managing director at Wedbush Securities, Apple is targeting shipments of 130 to 150 million new iPhones by the second half of 2021.
According to Ives, Apple’s supply chain in Asia needs to produce 90 to 100 million units to be able to meet initial orders for the iPhone 13. Apple relies heavily on the supply chain in China.
Over the past three years, Apple has continued to increase the number of suppliers from mainland China, and there are more suppliers than in any other country. In fact, tensions between the US and China have been escalating in recent times.
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