Hon Hai reportedly gearing up for 2020 iPhone production in Zhengzhou

Taipei,  Taiwan-based manufacturing giant Hon Hai Precision Industry Co. has stepped up its efforts to recruit new workers at its factory in Zhengzhou, China, the main plant for the contract manufacturing of iPhones, according to Chinese media.

In a report Tuesday, the news site Sina said Hon Hai is expected to secure more than 80 percent of Apple Inc.’s orders this year for the production of new iPhones and will exclusively roll out the iPhone 12 Pro Max model.

Other series expected to be manufactured this year include the 5.4-inch iPhone 12, the 6.1-inch iPhone Pro, 6.1 inch-iPhone 12 Max and the 6.7-inch iPhone Pro Max, according to the report.

In preparation, Hon Hai, known internationally as Foxconn, is offering incentives to attract new workers at its Zhengzhou plant in Henan province, the report said.

For example, job brokers will be paid 500 Chinese yuan (US$71.64) for every worker hired through them, while new employees will receive an incentive of up to 9,000 yuan when they meet certain job requirements, according to the new site.

At an investor conference in July, Apple CFO Luca Maestri said there would be “a few weeks” delay in the launch of the iPhone 12 series, implying that they would not be released in September as expected but rather sometime in the fourth quarter of the year.

According to market forecasts, Hon Hai’s fourth-quarter sales are expected to increase more than 50 percent sequentially to a record NT$1.95 trillion (US$66.10 billion), driven by iPhone demand.

For the entire 2020, analysts have forecast Hon Hai’s consolidated sales at NT$5.3 trillion and its net profit at NT$101.3 billion, or NT$7.3 per share.

Apple accounts for about 40 percent of Hon Hai’s total annual revenue, according to market estimates.


Source: Focus Taiwan News Channel

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