Foxconn's Huawei Unit Workers Are Cashing Bigger Paychecks Than iPhone Assemblers

In a surprising twist, Foxconn Technology Group has reportedly been offering its workers at the Huawei Technologies handset production unit higher wages than their counterparts in iPhone manufacturing, according to the South China Morning Post.

What Happened

The report states that Foxconn’s FIH unit oversees Huawei smartphone production and has been offering new workers in Shenzhen’s Longhua district an hourly rate of 26 yuan (US$3.60). In contrast, Foxconn’s iPhone-manufacturing unit, the Integrated Digital Product Business Group (iDPBG), offers a rate of 21 yuan (US$2.88).

This wage increase coincides with both Apple Inc AAPL and Huawei’s recent launch of new 5G handsets in China, the world’s largest smartphone market. Even though iPhone 15 production commenced at Foxconn’s Indian factory last month, most of the iPhone 15 series will still be produced in China.

See Also: If You Invested In Apple Stock Instead Of Buying iPhones Each Year, Here’s How Much You’d Have Today

Why It Matters

Apple’s strategy to decentralize its supply chain from China and invest heavily in India’s production was reported earlier. The move was seen as a response to the COVID-19 outbreak and subsequent riots at Apple’s largest Chinese factory. Apple aims to manufacture 15 million iPhone 15 units in India this year.

However, despite these efforts, iPhone 15 prices in China, Japan, and India were higher than many other countries, despite local manufacturing and assembly.

Moreover, Apple’s latest smartphone lineup has seen differing consumer demand trends. According to analyst Ming-Chi Kuo, the iPhone 15 Pro faces decreased demand, while the Pro Max model shows remarkable sales performance. This shift in demand might have contributed to the wage discrepancy between the Huawei and iPhone production units at Foxconn.

Photo by duan zhi xiang

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