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Apple shares climb on report Foxconn factories ramp-up hiring ahead of iPhone 16 launch

Published 13/07/2024, 12:28 am
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Shares of Apple (AAPL) have been given a boost Friday after a report from the South China Morning Post said manufacturer Foxconn is increasing hiring in the world's largest iPhone plant in Zhengzhou, capital of central Henan province.

The hiring increase is said to come as Apple prepares for the launch of its next-generation handset this autumn.

The publication said, citing recruitment posts published by the company this week, that for returning workers previously employed by the factory, the iPhone assembler is offering an approximately $3.44 hourly rate (25 yuan) and a bonus of up to 7,500 yuan.

According to the SCMP, a job post by a local labor agency said to be one of several promoting opportunities at the factory read: "The peak season for Foxconn's Zhengzhou plant is happening now: high-paying jobs for temporary workers and returning employees."

Apple's upcoming iPhone 16 models are highly anticipated due to their expected support for the US tech giant's new artificial intelligence (AI) features, set to arrive early next year.

The Cupertino, California-based company is relying on the AI upgrade to increase sales. According to a report from Bloomberg, their aim is to ship at least 90 million iPhone 16 devices in the second half of this year, which represents a 10$ growth compared to the previous generation.

Apple iPhone demand in China has declined recently, with sales in the country declining due to rising competition from local rivals, including Huawei Technologies.

The SCMP says Apple currently ranks third in the country, behind Vivo and Huawei spin-off Honor. Apple was reportedly trying to defend its share in the China smartphone market by offering steep discounts during the China midyear online shopping season, known as 618.

The SCMP, citing job posts, added that to prepare for the new iPhone, Foxconn is also raising salaries for temporary workers at its campus in China's southern tech hub of Shenzhen.

At the time of writing, Apple shares (NASDAQ:AAPL) are up more than 1% Friday.

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