According to GizChina , FIH, a unit specializing in manufacturing Huawei smartphones and operating under the auspices of Foxconn, has offered an hourly wage of 26 yuan (about 3.6 USD) for new workers at its Shenzhen factory, significantly higher than the 21 yuan hourly wage offered by iDPBG, a Foxconn unit responsible for manufacturing iPhones.
Huawei is one of FIH's major customers.
FIH is understood to be an increasingly important unit in the manufacturing ecosystem of Huawei and other smartphone manufacturers, but is primarily focused on Huawei’s manufacturing requirements. Workers recruited by FIH will be assigned to different teams based on current needs, with a significant possibility of being involved in the production of Huawei handsets.
Foxconn’s move comes amid fierce manufacturing competition between Apple and Huawei, both of which have recently launched new 5G smartphones in China. With the global push for 5G technology and growing demand for compatible smartphones, both tech giants are racing to capture a larger share of the lucrative market.
The pay gap between Huawei and Foxconn’s iPhone manufacturing units highlights a broader trend in the industry. Foxconn is known for its large workforce and manufacturing facilities in China, particularly in cities like Zhengzhou and Taiyuan. But changing market demand, geopolitical tensions and evolving supply chain strategies have led to shifts in pay structures.
In the past, Foxconn employees could earn substantial bonuses and higher monthly salaries, especially during peak production seasons. But bonuses this year may only increase by about 1,000 yuan ($137) due to lower orders and lower demand for workers, according to an insider at Foxconn’s labor services company.
It is worth noting that Apple has been actively diversifying its supply chain to reduce its dependence on a single manufacturer and mitigate risks related to geopolitical tensions. This diversification has led to a reassessment of the wage structure at Foxconn - a company that remains a key partner of Apple but is also expanding its operations to other prominent technology companies such as Huawei.
Foxconn’s decision to pay workers who make Huawei handsets more than those who make iPhones highlights the competitive landscape of tech manufacturing and the evolving dynamics of supply chains to meet market demands and geopolitical considerations. As Apple and Huawei continue their battle for dominance in the 5G smartphone market, such wage disparities could have significant implications for the workforce and the industry as a whole.
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