Foxconn Technology Group, a major Apple supplier, is making waves in the tech manufacturing industry by offering higher wages to workers producing Huawei handsets in its Shenzhen production unit compared to those engaged in manufacturing Apple's iPhones. Recruitment posts and information from labor agencies reveal this significant development.
Foxconn raises wages for Huawei workers in Shenzhen over iPhone production
At Foxconn's FIH unit, specializing in Huawei smartphone production under Foxconn International Holdings, newly hired workers in Shenzhen's Longhua district are being enticed with an hourly wage of 26 yuan (approximately $3.60). This surpasses the hourly rate of 21 yuan offered to workers in Foxconn's integrated Digital Product Business Group (iDPBG), responsible for iPhone production.
The FIH unit has become increasingly crucial in meeting Huawei's production needs and plays a pivotal role in the smartphone manufacturing ecosystem. Workers recruited by FIH may find themselves contributing to the production of Huawei handsets, further emphasizing Foxconn's shift in focus.
This move by Foxconn takes place amid intense production competition between Apple and Huawei in the ever-growing Chinese smartphone market, where both companies are racing to secure a larger share, especially with the rise of 5G technology and the heightened demand for compatible smartphones. The wage differential between Foxconn's Huawei and iPhone production units reflects broader industry trends as supply chain dynamics evolve in response to market demands and geopolitical factors.