Foxconn workers earn more building the Mate 60 Pro than the iPhone 15 line
In this article (5)
The Huawei Mate 60 Pro is getting a serious look from U.S. government officials who are trying to figure out how Huawei and SMIC (China’s largest foundry) created 7nm Kirin 9000S 5G chipsets in the face of U.S. sanctions. Huawei is not allowed to be shipped any cutting-edge chips made by any chip foundry that uses American technology to produce chips.
As a result, Huawei’s flagship Mate 50 series and P60 series used Qualcomm’s Snapdragon 8+ Gen 1 application processor after the company obtained a license to import the components. However, Qualcomm was forced to tweak these chips so that they would not work with 5G networks. But out of nowhere, the Mate 60 Pro uses chips produced by SMIC using its second-gen 7nm process node and these chips support 5G.
The other phone under intense scrutiny, but for a different reason, is the iPhone 15. Apple just unveiled the four new models in the series and worldwide phone buyers are taking a hard look at the new handsets to see which models they want to buy. They also want to see the new USB-C port on the devices.
Interestingly, in China, both the Mate 60 Pro and iPhone are assembled by the same contract manufacturer, Foxconn. And the Foxconn unit that assembles Huawei phones is paying its workers more than the unit that assembles the iPhone.
“Interestingly, in China, both the Mate 60 Pro and iPhone are assembled by the same contract manufacturer, Foxconn.”
Two recruitment agents told SCMP that Foxconn’s FIH division, a subsidiary that used to be known as Foxconn International Holdings, was offering new workers last week 26 yuan an hour ($3.60) to help assemble the Mate 60 Pro at the Foxconn factory in Shenzhen’s Longhua district. Meanwhile, workers helping to assemble the iPhone at Foxconn’s integrated Digital Product Business Group (iDPBG) are making 21 yuan an hour ($2.88), or 19.2% less than those building the Mate 60 Pro.
A recruitment agent with the surname Xu in Shenzhen said, “The new hires will know what phone they are making after the factory allocates them to different teams based on current demand, but these days they have a higher chance of making handsets for Huawei.” The agent went on to say that those making the iPhone make less than those working for Foxconn’s FIH unit because the iPhone production unit offers more welfare benefits for workers.
In Zhengzhou, home to the largest iPhone factory in the world, Foxconn is offering workers a peak signing bonus of 6,480 yuan ($888.35). Meanwhile, this year could be one of the toughest launches for the iPhone in China. Not only did the introduction of the Huawei Mate 60 Pro unleash a wave of nationalistic pride in the country, but the CCP banned the iPhone from being used in government offices citing security issues with the phone.
Just the other day, reliable analyst Ming-Chi Kuo pointed out that Apple doesn’t market the iPhone to those working in government offices and stated that people in China who buy Huawei phones do not buy the iPhone. As a result, he didn’t change his estimate of iPhone shipments for the rest of this year.
Questions & Answers
Q.Which Foxconn division is assembling the Huawei Mate 60 Pro and paying its workers more?
Which Foxconn division is assembling the Huawei Mate 60 Pro and paying its workers more?
Foxconn's FIH division, formerly known as Foxconn International Holdings, is assembling the Huawei Mate 60 Pro. It was offering new workers 26 yuan an hour last week for this work.
Q.What is the pay difference between workers assembling the Mate 60 Pro and the iPhone 15 at Foxconn?
What is the pay difference between workers assembling the Mate 60 Pro and the iPhone 15 at Foxconn?
Workers assembling the Mate 60 Pro were offered 26 yuan an hour. Those assembling the iPhone at Foxconn's iDPBG unit are making 21 yuan an hour, which is 19.2% less than the Huawei phone builders.
Q.Why is this year's iPhone launch potentially difficult in China?
Why is this year's iPhone launch potentially difficult in China?
The launch of the Huawei Mate 60 Pro generated nationalistic pride in China. Also, the CCP banned the iPhone from government offices due to security concerns, which could impact sales.
Q.What reason was given for iPhone production workers earning less than those making Huawei phones?
What reason was given for iPhone production workers earning less than those making Huawei phones?
A recruitment agent stated that iPhone production workers earn less because the iPhone unit offers more welfare benefits to its employees. This presumably compensates for the lower hourly wage.
Reader pulse
What's the main driver behind Huawei's resurgence?
16,207 votes so far