Absolutely, nothing is going well for Apple. A few weeks ago, thousands of employees left the Foxconn factory in Zhengzhou, China, the largest factory for Apple iPhone production. Workers fled for fear of catching more Covid. China has imposed strict restrictions on 200,000 workers.
Unsurprisingly, these demonstrations have greatly impacted the iPhone production chain, thereby greatly extending delivery times for the latest iPhones. As it gets more and more complicated to get an iPhone 14 and have it under the Christmas tree, Apple would not be at the end of its surprises.
Foxconn did everything to bring back employees
Foxconn recently announced new incentives for workers who want to stay in employment for the coming months. Indeed, the iPhone manufacturing unit the factory promised a “holding bonus” of up to 8,000 yuan (1,080 euros) For workers who agree to continue working until 6 March.
The policy will likely only apply to part-time workers currently employed in the factory, and those directly involved in manufacturing will be paid more. Thanks to these advantages; More than 100,000 people are said to have signed up during the massive recruitment campaign organized by Foxconn.. Among them, the majority of young workers seeking first experience in the business world.
New employees are already protesting to denounce their working conditions
The arrival of the new employees was supposed to be great news for Foxconn and Apple, but not everything went as planned. Due to strict quarantine policies, There was not enough room for a large influx of new workers. Because of this, Foxconn had to quickly suspend hiring.
According to some employees who may question the media, Foxconn would not deliver on all of its promises. They were to be notified this week they may not receive their bonus on the originally scheduled date.
the factory will lied to them by placing the new workers next to the old factory workers, which can create a health problem. As a matter of fact, employees who stayed at work after the recent protests may have been exposed to Covid-19. Videos show workers complaining or complaining about the food given to them during their quarantine. Inadequate barriers to contain an epidemic.
Faced with these sanitary conditions, so the new employees clearly wanted to escape from the factory. Other videos posted on Chinese social media by the new hires showed thousands of masked people in white protective gear with riot shields staring at police lines. We can see it in another clip A few people in white are hitting a person lying on the ground with batons.. Various protesters seem to be shouting ” fight fight! as the crowd tries to break through the barricades.
More delay expected with iPhone 14s
Restrictions and employee dissatisfaction have impacted production unsurprisingly, leading Apple to say earlier this month that it expects lower shipments of high-end iPhone 14 models, so it will likely delay smartphone production again.
As a reminder, Foxconn is responsible for approximately 70% of iPhone shipments worldwide. Seeing the main factory lose several thousand employees, therefore, is a real blow for Apple, which will have to bet on other smaller manufacturing sites in India and southern China in the coming weeks.
The situation at the Foxconn factory is therefore an important reminder. The dangers for Apple of relying on China-based manufacturing at a time when politics are unpredictable and trade relations are uncertain. According to JPMorgan analysts, the company should therefore reduce its production in China over the next few years, allowing India to take over production of around 25% of all iPhones by 2025.
1/2 The latest #Foxconn inside #iPhone city #Zhengzhou: Newly hired workers clash with security guards as they try to rush out of the factory.
Reason: Foxconn tried to hire about 100,000 new workers some time ago, after many of them fled. New workers were told they would pic.twitter.com/XsVzVT7N7r
— Jennifer Zeng 曾錚 (@jenniferzeng97) 22 November 2022