Newsnews

Fri Jan 18, 2019, 09:20 AM

Foxconn Cuts 50,000 Jobs Due To iPhone Sales Slowdown

...

The report comes after Apple announced plans to cut iPhone production for the second time in two months.

Around 50,000 contract workers have been let go since October at Foxconn Technology Group's most important iPhone factory at Zhengzhou, in China's Henan Province, according to an industry source familiar with the situation. Normally, the contracts of these workers would be renewed every month from August until mid- to late January, when the workforce is traditionally scaled back for the slow iPhone production season.

The depth of the cuts isn't deeper than in previous years, it's just happening much earlier than expected, as many workers were asked to leave before year-end as expectations for holiday sales slumped.

The scale of the cuts is not necessarily deeper than previous years, it is simply significantly earlier, industry sources said. "It's quite different this year to ask assembly line workers to leave before the year-end," a source with knowledge of Foxconn's reductions said.

Other important iPhone suppliers have let workers go much earlier than usual as they struggle with slower-than-expected demand for Apple's iconic product. The California tech giant earlier this month shocked the market by warning of a slump in revenues at the end of 2018. This year is also shaping up to be difficult, with further declines expected in the smartphone market, while the ongoing U.S.-China trade war is taking a heavy toll.

Foxconn isn't alone in its cutbacks: Other companies further down the supply chain are also cutting jobs.

Pegatron, Apple's second-biggest iPhone assembler, began canceling monthly labor contracts in November. A source close to the company said its normal practice was to reduce the 200,000-strong head count by tens of thousands every month until reaching about 100,000 - the minimum required for daily operation, according to one source familiar with the situation. "And for , it just happened sooner than in the past because of poor demand."

Industry sources said early cutbacks were happening further down the supply chain as well. One key component supplier based in Shenzhen had asked 4,000 workers to take an extended "vacation" from October to March, a person with knowledge of the situation said. "The company has not actively laid off those workers yet. It will decide whether or not to lay them off after March 1," the source said.

https://www.zerohedge.com/news/2019-01-18/foxconn-cuts-50000-seasonal-jobs-iphone-sales-slowdown-stings

7 replies, 175 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 7 replies Author Time Post
Reply Foxconn Cuts 50,000 Jobs Due To iPhone Sales Slowdown (Original post)
Troll2 Jan 2019 OP
freedumb2003 Jan 2019 #1
Qukid Jan 2019 #2
Salaam Jan 2019 #3
oflguy Jan 2019 #4
M411 Jan 2019 #5
Troll2 Jan 2019 #6
Lifelong Jan 2019 #7

Response to Troll2 (Original post)

Fri Jan 18, 2019, 10:14 AM

1. I guess their version of "metoo" without the pound is starting to flag

 

For well over 5 years all their devices are just arguably slightly prettier versions of things that are already in the market.

There is nothing the latest iPhone has that I didn't have in my old S7 (I have the S9 now).

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Troll2 (Original post)

Fri Jan 18, 2019, 10:16 AM

2. Rush needs to devote more of his show to Iphone promotion

to support the starving child workers in China.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Troll2 (Original post)

Fri Jan 18, 2019, 12:38 PM

3. Sorry Wisconsin.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Troll2 (Original post)

Fri Jan 18, 2019, 12:39 PM

4. I wish iphone would go belly up

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Troll2 (Original post)

Fri Jan 18, 2019, 11:58 PM

5. when is Chinese new year ? ...nt

Reply to this post

Back to top Alert abuse Link here Permalink


Response to M411 (Reply #5)

Sat Jan 19, 2019, 08:18 AM

6. Fri, Feb 1, 2019 Sat, Feb 9, 2019

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Troll2 (Original post)

Sat Jan 19, 2019, 09:39 AM

7. Trump the businessman, has an "easy" solution.

From the article. "This year is also shaping up to be difficult, with further declines expected in the smartphone market, while the ongoing U.S.-China trade war is taking a heavy toll."




Some, not all of the manufactured parts for the Apple "iPhone".

https://www.lifewire.com/where-is-the-iphone-made-1999503

The iPhone's Component Manufacturers

Manufacturing is the process of making the components that go into the iPhone.

Because there are hundreds of individual components in every iPhone, it's not possible to list every manufacturer whose products are found on the phone. It's also difficult to discern exactly where those components are made because sometimes one company builds the same component at multiple factories. Some of the suppliers of key or interesting parts for the iPhone 5S, 6, and 6S and where they operate, included:

Accelerometer: Bosch Sensortech, based in Germany with locations in the U.S., China, South Korea, Japan, and Taiwan

Audio chips: Cirrus Logic, based in the U.S. with locations in the U.K., China, South Korea, Taiwan, Japan, and Singapore

Battery: Samsung, based in South Korea with locations in 80 countries

Battery: Sunwoda Electronic, based in China

Camera: Qualcomm, based in the U.S. with locations in Australia, Brazil, China, India, Indonesia, Japan, South Korea, and more than a dozen locations through Europe and Latin America

Camera: Sony, based in Japan with locations in dozens of countries

Chips for 3G/4G/LTE networking: Qualcomm

Compass: AKM Semiconductor, based in Japan with locations in the U.S., France, England, China, South Korea, and Taiwan

Glass screen: Corning, based in the U.S., with locations in Australia, Belgium, Brazil, China, Denmark, France, Germany, Hong Kong, India, Israel, Italy, Japan, South Korea, Malaysia, Mexico, Philippines, Poland, Russia, Singapore, South Africa, Spain, Taiwan, The Netherlands, Turkey, the U.K., and the United Arab Emirates

Gyroscope: STMicroelectronics. Based in Switzerland, with locations in 35 countries

Flash memory: Toshiba, based in Japan with locations in over 50 countries

Flash memory: Samsung

LCD screen: Sharp, based in Japan with locations in 13 countries

LCD screen: LG, based in South Korea with locations in Poland and China

A-series processor: Samsung

A-series processor: TSMC, based in Taiwan with locations in China, Singapore, and the U.S.

Touch ID: TSMC

Touch ID: Xintec. Based in Taiwan.

Touch-screen controller: Broadcom, based in the U.S. with locations in Israel, Greece, the U.K., the Netherlands, Belgium, France, India, China, Taiwan, Singapore, and South Korea

Wi-Fi chip: Murata, based in the U.S. with locations in Japan, Mexico, Brazil, Canada, China, Taiwan, South Korea, Thailand, Malaysia, Philippines, India, Vietnam, The Netherlands, Spain, the U.K., Germany, Hungary, France, Italy, and Finland

"Exciting!"

Reply to this post

Back to top Alert abuse Link here Permalink

Newsnews