Ahead of the 2018 iPhone launch from Apple in September, the company’s key supplier — Foxconn — has started hiring more workers for its iPhone assembly plants in China. The company is reportedly offering a one-time bonus of up to CNY 2,000 (~$300) to workers who renew their contracts.
It is typical of Foxconn to ramp up hiring for workers before a few months ahead of a new iPhone launch. The company does this to increase the production capacity of its factories and meet the demand-supply imbalance that usually exists when a new iPhone is launched. This hiring season lasts until November of every year at which point Foxconn lets go of most workers due to waning iPhone demand.
Foxconn is also applying stricter cost management policies this year after it reported lower-than-expected profits last year while assembling the iPhone X due to its high pre-production cost. While Foxconn will be assembling the majority of iPhones for Apple, the latter is also relying on the likes of Pegatron and other smaller Chinese suppliers for fulfilling its requirements.
Because of the high pre-production costs for the iPhone X, Foxconn achieved weaker-than-expected profits in the fourth quarter of 2017, and to prevent the same from happening for the new iPhones, Foxconn has applied stricter cost management, the paper said, adding the hiring campaign is expected to continue until November 2018.
Apple is expected to unveil three new iPhones this year. Out of this, two handsets will feature a notched OLED panel with a 5.8-inch and 6.5-inch display size. They will be accompanied by a cheaper 6.1-inch LCD model also featuring a notch, though it will come with slightly larger bezels as per a leak. While all three iPhones are expected to feature Face ID, the 6.1-inch LCD iPhone will make a few compromises to keep its price down. Analysts expect the 5.8-inch iPhone X and 6.5-inch iPhone X Plus to be in heavy demand initially, but after that they expect the 6.1-inch LCD iPhone to become the best seller of the lineup.
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