Apple continues to build a wider manufacturing base outside of China, as it has added Taiwanese manufacturer Pegatron as the second assembly partner to produce iPhone 14 models, says a Bloomberg report. Foxconn began production in India in September.
Apple’s iPhone 11, iPhone 12, iPhone 13, and iPhone 14 models are being produced by Taiwanese assembly partners Foxconn, Wistron, and Pegatron in Indian manufacturing plants.
Apple’s Indian iPhone exports have amounted to $1 billion since April. While that number is dwarfed by China’s output, the increasing Indian iPhone output indicates that Apple is willing to invest in the country as an alternative to China’s production dominance, which is currently suffering, due to the country’s zero-COVID policy.
Foxconn’s main Zhengzhou plant, which employs about 200,000 people, has been hit by restrictions following an outbreak at the factory, which led the city of about 10 million people to be locked down as a result. Apple could see Chinese iPhone production fall by as much as 30% next month due to the COVID-19 restrictions in China.
Earlier this week, we reported that Foxconn, facing a shortage of workers, is quadrupling daily bonuses to workers, in an attempt to retain enough workers to continue with iPhone assembly. Foxconn reportedly is offering workers at its Zhengzhou plant a bonus of 400 yuan per day ($55), a 4x increase over the company’s normal 100 yuan bonus.
Employees that work more than 25 days can score a maximum bonus of 5,000 yuan for the month, up from 1,500 yuan. Workers that put in a “full effort” can score more than 15,000 yuan. (Sorry, Deadpool, no larger bonuses for those that put in “maximum effort.”) The new bonus tiers mean the average worker can earn between 3,000 and 4,000 yuan on a monthly basis.
Apple’s assembly diversification away from China won’t happen immediately, as Bloomberg recently reported that it would take approximately eight years for Apple to move a mere 10% of its production capacity out of China. Approximately 98% of iPhones are still assembled in the country.
