Foxconn tipped to start manufacturing MacBooks in Vietnam as early as May 2023

Source: Apple

Apple has been looking to diversify its supply chain, and one of the new major product lines is in Vietnam. Rumours have it that Foxconn will begin producing MacBook models in Vietnam as early as May 2023. The Taiwanese company was granted a license in January 2021 to build a US$270 million plant in Vietnam for manufacturing MacBooks and iPads. 

This new plant is developed by Fukang Technology and will be located in the northern Vietnamese province of Bac Giang. The factory is projected to produce eight million laptops and tablets annually. Aside from the Apple MacBook, the Vietnam plant is expected to produce the Apple Watch and HomePod as well.

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Unrest at iPhone plant results in mass resignations, with report of 30% production loss

There have been mass resignations of workers at Foxconn's big iPhone assembly plant in Zhengzhou, China, following unrest at the plant. Foxconn failed to pay promised recruitment bonuses, with fears mounting over a COVID-19 outbreak within the plant. Over 20,000 new hires have been said to have left, and an internal estimate reports that over 30% of production could be lost. 

Apple has already taken the unusual step of warning that iPhone 14 Pro availability would be "very constrained" during this crucial holiday sales period. Foxconn has also released a warning of its revenue growth being reversed.

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Huawei reportedly cuts back phone production following US crackdown

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Huawei seems to be managing expectations on how many phones it’ll be able to sell with the US ban still ongoing. According to a report from South China Morning Post, sources claim Foxconn has halted Huawei phone production lines as the company cut back on orders. It wasn’t specified if this was going to be a short- or long-term cut, but this follows months of Huawei increasing its demand for phones. The move that reportedly prompted Foxconn to go on a hiring spree. Foxconn declined to comment on the report, while Huawei hasn’t responded to initial requests for comments. If the report is to be believed, it looks like Huawei is buckling down to minimize its losses as it can’t work with its US partners at the moment.

Source: Engadget

Over half of iPhone maker Foxconn’s employees have been replaced by robots

Photo courtesy of MIT Technology Review

Showing the capabilities of a robotic workforce, the iPhone maker Foxconn has reportedly cut its workforce significantly since the launch of the iPhone 6. According to local figures from Kunshan where the company is based, the Foxconn factory cut down on its employee strength from 110,000 to 50,000 due to the use of robots. This has significantly reduced labor costs and help cushion and minimize future layoffs caused by falling sales of products they produce (like the iPhone). It also helps in a way repair the dented reputation of Kunshan, which suffered from an industrial explosion that killed 146 people back in 2014.

Greater automation for producing the iPhone can be both a good and bad thing for Apple. It has long since been haunted by allegations of poor working conditions. But it might hamper the company from getting into better deals with countries since less workers needed would mean fewer jobs, which is bad since economic development is part of Apple’s push to enter certain territories.

Source: South China Morning Post | Via: 9to5Mac