Foxconn reportedly set to hire 90K workers for iPhone 5S production ramp
According to a report from the Far East on Monday, Apple partner manufacturer Foxconn is in the midst of hiring 90,000 workers in preparation of expectedly large orders of the next-generation iPhone.
Citing sources familiar with the matter, Taiwanese publication Focus Taiwan reports Hon Hai, better known as Foxconn, is starting a massive round of recruiting for its Shenzhen factory that will add as many as 90,000 people to the plant's workforce.
Foxconn instituted a hiring freeze earlier this year to adjust for an unexpectedly high number of returning workers after the Chinese New Year. The company resumed recruitment operations in April to manage Apple's yearly production ramp for its latest flagship iPhone.
While Foxconn is thought to be handling assembly of the so-called "iPhone 5S," Apple partner supplier Pegatron will supposedly be responsible for a low-cost handset made of polycarbonate or plastic. In May, Pegatron was also reported to have initiated a hiring drive for some 40,000 workers, a 40 percent boost to its workforce, to cope with added iPhone orders.
Apple is widely expected to debut a next-generation iPhone model alongside a cheaper handset this fall, though an exact launch timeframe is disputed. According to well-connected analyst Ming-Chi Kuo, the iPhone 5S has been a challenge to manufacture and may see limited availability following a release at the end of September. He noted that production of the low-cost version is on track and should be ready for an early-September unveiling if Apple chooses to separate the two device launches.
The iPhone 5S is thought to retain the design of Apple's current iPhone 5, but will likely have upgraded internals like a faster processor and camera enhancements. It is also speculated that the next iPhone could boast a biometric fingerprint reader built into its home button. That rumor was bolstered by some hard evidence on Monday, when references to a "Biometric Kit" were discovered in the latest iOS 7 beta code.
Citing sources familiar with the matter, Taiwanese publication Focus Taiwan reports Hon Hai, better known as Foxconn, is starting a massive round of recruiting for its Shenzhen factory that will add as many as 90,000 people to the plant's workforce.
Foxconn instituted a hiring freeze earlier this year to adjust for an unexpectedly high number of returning workers after the Chinese New Year. The company resumed recruitment operations in April to manage Apple's yearly production ramp for its latest flagship iPhone.
While Foxconn is thought to be handling assembly of the so-called "iPhone 5S," Apple partner supplier Pegatron will supposedly be responsible for a low-cost handset made of polycarbonate or plastic. In May, Pegatron was also reported to have initiated a hiring drive for some 40,000 workers, a 40 percent boost to its workforce, to cope with added iPhone orders.
Apple is widely expected to debut a next-generation iPhone model alongside a cheaper handset this fall, though an exact launch timeframe is disputed. According to well-connected analyst Ming-Chi Kuo, the iPhone 5S has been a challenge to manufacture and may see limited availability following a release at the end of September. He noted that production of the low-cost version is on track and should be ready for an early-September unveiling if Apple chooses to separate the two device launches.
The iPhone 5S is thought to retain the design of Apple's current iPhone 5, but will likely have upgraded internals like a faster processor and camera enhancements. It is also speculated that the next iPhone could boast a biometric fingerprint reader built into its home button. That rumor was bolstered by some hard evidence on Monday, when references to a "Biometric Kit" were discovered in the latest iOS 7 beta code.
Comments
Hopefully this production ramp won't lead to an oversupply of unsold 5Ss in the wake of the iPhone "5C".
Quote:
Originally Posted by blackbook
This is interesting but I'm sure the polycarbonate iPhone is going to sell in bigger numbers than the 5S, and it could potentially eat into 5S sales.
Hopefully this production ramp won't lead to an oversupply of unsold 5Ss in the wake of the iPhone "5C".
$100-$200 savings for many does not matter. Low cost iPhone will bring in new buyers who wants to save some money and get hands on Apple brand!
Low cost iPhone will see significant boost in the emerging markets!
The 4 and 4S don't sell more than the 5. It has nothing to do with the hardware.
I'd love to see what happens if Apple decides to not provide 5C phones to US carriers - assuming it is intended for developing markets only. Reverse gray market world be really exciting to watch, provided they are compatible and unlocked.
When has Apple ever done that? That's not in their play book.
Quote:
Originally Posted by helicopterben
$100-$200 savings for many does not matter. Low cost iPhone will bring in new buyers who wants to save some money and get hands on Apple brand!
Low cost iPhone will see significant boost in the emerging markets!
Quote:
Originally Posted by Tallest Skil
The 4 and 4S don't sell more than the 5. It has nothing to do with the hardware.
True, but if we are to believe the statistics, the high end iPhone makes up 50% of sales currently. With the "5C" supposedly replacing both low end options we can assume it could make up 50% or more of total iPhone sales.
If the 5C gains additional traction in markets where the 4/4S weren't able to do well, that would push the 5C to a higher percentage of overall iPhone sales than the higher end model.
I think the 5S will do well, and I will certainly be buying one, but the 5C could steal the show and eat into high end sales. Anyway how much it will cannibalize remains to be seen, so who knows maybe you guys are right that the cheap iPhone won't affect the high end iPhone's sales rate.
Quote:
Originally Posted by mstone
I'd love to see what happens if Apple decides to not provide 5C phones to US carriers - assuming it is intended for developing markets only. Reverse gray market world be really exciting to watch, provided they are compatible and unlocked.
Quote:
Originally Posted by Suddenly Newton
When has Apple ever done that? That's not in their play book.
Yeah that would be terrible.
You know if that were to happen, the "cheap" 5C would probably cost more than the 5S for us in the states? The price alone would eliminate any black/grey market for the device.
Anyway the whole point of the 5C is to replace the 4/4S with a modern device, so it will obviously be a global phone not a regional phone.
Quote:
Originally Posted by Suddenly Newton
When has Apple ever done that? That's not in their play book.
I can't recall Apple ever doing that but every other one of their competitors has made different versions of devices for different markets. The simple fact that they are even making a 'economy' phone kind of throws the playbook out the window. I really don't expect that to occur just that it would be interesting.
If you don't cannibalize your own sales, someone else will.
Emerging markets are already buying Android phones for $100
The lowest cost iPhone is currently $450
How inexpensive do you think the plastic iPhone will be? :wow:
Most analysts seem to be assuming that the iPhone 5c will just be a 5 in a new plastic shell and perhaps with less memory. I'm hoping that the 5c (and 5s) will both incorporate Qualcomm's RF360 Front End Solution making them compatible with China Mobile's TD-SCDMA network AND that during the 5c's announcement there is also an announcement of a deal with China Mobile to carry the iPhone. That should give the stock price another nice bump back up to the $500+ range.
I'm assuming that's what will happen this fall.
The main reason Apple may be discontinuing the iPhone 5 may not be because of production cost. Instead it could be because it lacks China Mobile support. Most likely Apple wants both new phones to support China Mobile's frequency bands in order to only have to sell 2 phones globally. Makes sense to me.
China Mobile could give both phones the boost necessary to explain the anticipated production ramp up.
Quote:
Originally Posted by Michael Scrip
Emerging markets are already buying Android phones for $100
Where can you buy a smartphone unsubsidized for $100?
Quote:
Originally Posted by bizzare
The 5s is going to increase in price.
I doubt this ... not Apple's M.O. and they would catch a lot of flak for doing so, but I do think that if Apple offered a larger screen version of the iPhone in addition to the current size, they could justify a $50 to $100 price premium for the larger screen version. In addition to there being new potential customers at the lower end, there are plenty of people that would pay more for a top of the line iPhone.
What makes you think they're smartphones?
What makes you think they are not?
http://www.pricedealsindia.com/popularsearch/android-mobile-phones-under-rs-5000-in-india.php
Hell... some of those phones are $80
EDIT
Some interesting things from that site... Android phones start under Rs.5000 ($84)
Galaxy S4 is Rs.33749 ($567)
iPhone 5 is Rs.42361 ($712)
.
All use stats ever and the fact that people in these third world countries aren't affording $50 a month data plans if they're being idiots and whining about how a flagship high-end phone is $400 to own outright.
Quote:
Originally Posted by Tallest Skil
All use stats ever and the fact that people in these third world countries aren't affording $50 a month data plans if they're being idiots and whining about how a flagship high-end phone is $400 to own outright.
http://www.connectindia.in/mobile-plans/Reliance/postpaid/plan/1030.htm
Reliance Totally unlimited @1499
Monthly Rental Rs.1,499/- ~$25
(This amount has to be paid in your monthly billing cycle)
Plan Details
Local Calls : 0 Paise/Sec
STD Calls : 0 Paise/Sec
SMS : 1 Rs./SMS
More Details
Freebies
All Local and STD calls free.
3000 Local and STD SMS free monthly
5 GB Free data usage On 3G
... under $50.00