2015年1月27日火曜日

Foxconn to Cut Workforce as Apple Expected to Announce Record-Breaking iPhone Sales [iOS Blog]

Foxconn Technology Group, Apple's main assembly partner for iPhones, today announced (via Reuters ) major plans to reduce its workforce due to "declining revenue growth and rising wages in China." The announcement comes mere hours before Apple's financial earnings announcement for the first fiscal quarter of 2015, in which the company is expected to announce record iPhone sales.



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The company doubled its labor costs in recent years following a few public scandals involving worker suicides and poor working conditions, while revenue growth has slowed. After a decade of steady increases following the explosion of popularity for smartphones and tablet devices, mostly thanks to the manufacturing of Apple products, Foxconn hasn't faced the issue of diminishing returns until now.

"We've basically stabilized (our workforce) in the last three years," Woo said. When asked if the company plans to reduce overall headcount, he responded "yes".



Revenue growth at the conglomerate tumbled to 1.3 percent in 2013 and only partially recovered to 6.5 percent last year after a long string of double-digit increases from 2003 to 2012.

Today's news comes on the heels of reports indicating Apple likely sold more iPhones in China than the U.S. in the last quarter, and expectations the iPhone will have record sales coming off the launch of the iPhone 6 and 6 Plus.



Foxconn's job cuts have not been specifically tied to its Apple business, but Apple is a major customer and hiring patterns do generally follow the iPhone product cycle, which should begin to slow a bit follow the rush of customers upgrading to the new models in the early months of availability. Foxconn is also reported to be increasing investments in Apple-related areas, including building a $2.6 billion display plant and perhaps working on sapphire displays for Apple products.



















from MacRumors: Mac News and Rumors - All Stories

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