Apple returns to China to produce iPhones?

Analysts believe that Foxconn has increased its recruitment of workers to mass produce Apple’s new products, including the iPhone 13. Production for Apple has returned to China because of the outbreak of Covid-19. strong in India and several other countries.

Foxconn factory in Zhengzhou, Henan, central China has decided to double the bonus for workers to 6,000 yuan ($940) from 3,500 yuan per person at the end of May. New employees are recruited. Users will receive this bonus amount if they work at least 55 days in a period longer than 90 days.

A source close to Foxconn’s recruitment said that some of Foxconn’s factories in China even offer an extra 10,000 yuan if new hires agree to work for at least 150 days.

” Severe labor shortages have caused recruitment to continue since the beginning of the year, ” the source said on condition of anonymity.

Luffy Lin, an analyst with Witdisplay – an electronics industry consulting platform, said that Foxconn has stepped up recruitment in China to produce new products for Apple, including the iPhone 13, to ensure assurance supply when the product hits the market.

” In the past, some Apple orders, such as the iPhone 12, were made in India. However, the pandemic raging in the world’s second most populous country has disrupted supply chains and operations. Therefore, most of Apple’s new orders will be handled by Foxconn factories in China, “said Lin.

According to this expert, Foxconn’s factories in Zhengzhou and Shenzhen will probably only produce iPhone 13.

iPhone 13, Apple’s latest product, will be released in September. Observers expect this phone to have good sales. TSMC has begun mass production of the A15 chip for Apple. Other components for Apple products will also be accelerated in the second half of 2021.

” iPhone 13 has faster 5G connectivity, bigger camera, screen and battery which makes them highly anticipated, ” Lin said. Meanwhile, Magirror Research predicts iPhone 13 sales could reach 45 million units in 2021.

Meanwhile, a source said that the trend of moving production to China could last up to 6 months, even 1 year. However, the high labor costs make the world’s second largest economy not a long-term choice of suppliers for Apple. Countries like India would be much more attractive if they could get the Covid-19 pandemic under control and make vaccinations available on a large scale.

At the moment, the most urgent problem facing the world is a vaccine against Covid-19. In contrast to the US and Europe, vaccines are not yet universally available in the rest of the world, making epidemic outbreaks always present. The more widespread the infection, the more likely the virus has a chance to mutate and lead to the emergence of vaccine-resistant strains. Therefore, the world can only be safe when the vaccine is widely administered.