Foxconn stops recruiting workers in a sudden: related to demand drop of iPhone 5?

Apple’s main manufacturer, Foxconn did a lot of long term recruitment to deal with both overwhelming worldwide demand for iPhone and iPads and also the high turnover rate of their workers employment. It has been recruiting workers since iPhone 4 released. Yet, recently Foxconn rarely stopped their recruitment for workers in their factories in Mainland China. Since 2009, the producer had never stopped employing workers into the demanding production line.

According to Financial Times, the need for worker at the moment is the lowest since 2009. It is rumored to be related to the decreasing trend of demand for iPhone 5. This unexpected drop in demand is claimed to have outweighed the need for workers, causing the employment cut.

However, Foxconn has officially responded that this decision has nothing to do with production of iPhone 5. They further explained that many workers do change their jobs after the Chinese New Year in the past, this year is an exception, which means more workers returned to Foxconn after the Lunar New Year. Therefore, Foxconn saw no need to recruit more in the coming year.

I believe what Foxconn said to the public was true – it produces not exclusively for Apple Inc. some other companies like Samsung, Sony… Etc also do business with Foxconn it is just that Apple entirely relies on Foxconn for almost all of their gadgets’ and idevices’ production. People return to their own factory because of many reasons. One of the most important reasons will be a the income incentive given by the company. Second to the income would be the working environment that Foxconn was said to have been improving on. Therefore, the demand for workers doesn’t accurately reflect the demand of iPhone 5. We need a basket of indicators to find out the reasons behind.

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