In an attempt to attract workers to meet demand for the iPhone 13 lineup, Apple suppliers in China are significantly raising their starter bonuses. Foxconn’s factory in Zhengzhou, which is estimated to manufacture around 80 percent of the world’s iPhones, has raised its new hires bonus to a record high of 10,200 yuan (U.S. $1,578).
Likewise, Lens Technology has doubled its bonus 5,000 yuan in February to 10,000 yuan in May, while Luxshare Precision’s factory in Guangdong has doubled its internal referral bonus from 2,500 yuan in April to 5,000 yuan in May, with a top-up bonus of 3,800 yuan for returning workers who previously left the company.
Over the past three years, Apple has added more new suppliers from mainland China to its vendor list than any other country, but simultaneously the growth of China’s labor force has peaked as factory jobs have started to lose their appeal and more workers move out of industrial labor, leading to companies having to lure in workers with more attractive pay packages.
The current aggressive hiring spree seeks to combat increasingly ramped-up production for the iPhone 13 models, which are believed to be on track for launch late next month.