Foxconn Abruptly Halts Hiring at iPhone Factory Amid New Lockdown and iPhone 14 Delay Concerns

Roughly 24 hours after saying it would ramp up hiring and incentives for new employees, Foxconn, Apple's main iPhone supplier, said today it would abruptly stop hiring new workers for its plant in Zhengzhou, China, after new COVID-19 lockdowns and restrictions were imposed on the city of nearly 11 million residents.

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Just yesterday, Foxconn was signaling it wanted to hire more workers to meet increased consumer demand, on top of additional demand caused by supply chain constraints for the upcoming iPhone 14 series. Now, South China Morning Post reports that Foxconn has suspended hiring of new workers, saying it could "complicate" production for the ‌iPhone 14‌ lineup slated to launch in the fall.

The suspension came on the heels of the Taiwanese company's plans earlier this week to boost recruitment by offering higher cash bonuses, the agencies said in posts on Tencent Holdings platform WeChat and ByteDance-owned Douyin, the Chinese version of global hit short video app TikTok.

The move to suspend the hiring of new assembly line workers could complicate the iPhone 14 production schedule of Foxconn, which has run its smartphone and components production in Zhengzhou under a “closed-loop” system that confines employees within its campus.

So far, Apple is not expected to drastically delay the launch of the ‌iPhone 14‌ series, as it did for the iPhone 12. Unlike the normal timetable, Apple was forced to delay the launch of the ‌iPhone 12‌ till October 2020, rather than September. DigiTimes has speculated that Apple's supply chain woes could result in a similar scenario this year.

Some parts of Apple's supply chain are on the mend, however. Quanta, Apple's supplier for the MacBook Pro, this week resumed production at its plant in China following some disruptions caused by new lockdowns and restrictions. During its earnings call last week, Apple said it expects supply chain constraints to continue into the next quarter. Tim Cook said that Apple has done a "reasonable job" navigating the supply chain roadblocks.

Tag: Foxconn

Top Rated Comments

bLackjackj Avatar
3 weeks ago

Why are people still pretending covid is a thing?
Maybe because it is! Seriously, people like you in denial are the reason why we will never be able to live without it. Wear a mask, get vaxxed & protect those you actually love & care about.
Score: 26 Votes (Like | Disagree)
TheYayAreaLiving ? Avatar
3 weeks ago
Apple, stop relying on China, please. They’re the reasons they’re costing you a loss of dollars now.

Why can't Apple can focus on India and built the new iPhones there?
Score: 22 Votes (Like | Disagree)
DjanSeriyAnaplian Avatar
3 weeks ago

Part of it is better infrastructure and existing supporting industry in China, as well as strangely enough, more stable government and less corruption.
Two social credit points have been deposited into your account, spend them wisely citizen!
Score: 21 Votes (Like | Disagree)
Zachari Avatar
3 weeks ago
Time to ramp up production in Texas!
Score: 20 Votes (Like | Disagree)
Zaft Avatar
3 weeks ago
Yes these lockdowns have worked so well before….this is just the Chinese government showing its people who’s boss.
Score: 20 Votes (Like | Disagree)
bassexpander Avatar
3 weeks ago
Apple, please diversify more. This China relationship is proving too damaging to leave so many eggs in one basket. Apple needs to be building in other places, as not to be caught flat-footed when China attacks Taiwan after it has finished getting its populace used to this war footing they are on under the guise of Covid restrictions.
Score: 15 Votes (Like | Disagree)

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