In a surprising twist, Foxconn Technology Group has reportedly been offering its workers at the Huawei Technologies handset production unit higher wages than their counterparts in iPhone manufacturing, according to the South China Morning Post.
What Happened
The report states that Foxconn’s FIH unit oversees Huawei smartphone production and has been offering new workers in Shenzhen’s Longhua district an hourly rate of 26 yuan (US$3.60). In contrast, Foxconn’s iPhone-manufacturing unit, the Integrated Digital Product Business Group (iDPBG), offers a rate of 21 yuan (US$2.88).
This wage increase coincides with both Apple Inc (NASDAQ:AAPL) and Huawei’s recent launch of new 5G handsets in China, the world’s largest smartphone market. Even though iPhone 15 production commenced at Foxconn’s Indian factory last month, most of the iPhone 15 series will still be produced in China.
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Why It Matters
Apple’s strategy to decentralize its supply chain from China and