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Stocks closed out the first full trading week of December with a win on Friday as investors assessed the US monthly jobs report in a positive light. The report showed a decrease in the unemployment rate to 3.7% in November and an addition of 199,000 jobs. Investors interpreted the figures as evidence that the Federal Reserve will achieve a soft landing for the economy. The upcoming Federal Reserve meeting holds importance for its guidance on rate cuts. Apple plans to ramp up iPhone production in India, aiming to produce a quarter of the world's iPhones in the country within the next two to three years. Apple assembled $14 billion worth of iPhones in India during FY23-24, constituting 14% of its global iPhone production. This move reflects Apple's strategy to diversify its production base away from China. Commerce minister Piyush Goyal mentioned that Apple aims to start 25% of total iPhone production in India by 2025. The iPhone is manufactured in India by three contract manufacturers: Foxconn (67% of India-made iPhones), Pegatron Corp. (17%), and Tata Group (formerly Wistron Corp.). Apple plans to increase exports from India, and India's mobile phone exports are expected to exceed ₹1.2 lakh crore this financial year. Tata Group acquired Taiwan's Wistron plant and is in talks to take control of another iPhone manufacturing facility owned by Pegatron in the country. Paramount Pictures is being acquired by Amazon in a deal that will bring movies from indie film studio A24 to HBO and Max streaming. Microsoft has gained a non-voting position on the board of OpenAI. The stock market rally slowed down after the jobs report, reducing the chances of an early interest rate cut by the Federal Reserve. [9e41d6ea] [ecff8706]
Workers at Foxconn's iPhone factory in Zhengzhou, China describe a peak production season marred by labor protests and Covid-19 chaos. The factory, known as 'iPhone City,' covers an area of 5.6 square kilometers and employs around 200,000 workers. The factory operates on a just-in-time manufacturing model, with production increasing during the release of new iPhone models. The factory faced disruptions due to Covid-19 outbreaks and a labor protest, causing Apple to lose an estimated $1 billion per week in iPhone sales. The article highlights the precarious lives of Chinese manufacturing workers and the economic risks of relying on one facility for Apple's supply chain. The factory offers high pay and bonuses to attract workers during peak production seasons, but turnover is high due to the repetitive and demanding nature of the work. The factory faced a labor protest in November 2022, with thousands of workers demanding compensation and better working conditions. The factory also faced Covid-19 outbreaks, with workers allegedly advised not to get tested so they could continue working. Despite the challenging conditions, some workers view the factory as an opportunity to make money in a country with limited job prospects. The article provides firsthand accounts from workers and highlights the oppressive working conditions and lack of dignity experienced by many workers at the factory.
Apple has shifted its iPhone production out of China, leading to the closure of a Foxconn facility in Nanning, which is now deserted. The move is part of Apple's strategy to diversify its production away from China and towards countries like India and Vietnam. The closure of the facility has had a significant impact on the local community, with nearby skyscrapers struggling to make sales. Some of the equipment from the facility has been taken to similar factories in Vietnam. The closure highlights the potential economic impact of Apple's production shifts on local areas.
Unionized employees at an Apple store in Towson, Md., have voted to authorize a strike amid union accusations that the tech giant isn’t bargaining in good faith in negotiations over its first union contract. If workers actually strike, it would be the first work stoppage by employees of the company’s more than 270 U.S. retail locations.
Apple Inc. has suspended plans to build a $552 million corporate campus in Research Triangle Park. Construction was supposed to start in 2026, but company executives told state officials last week they want to delay the project for up to four years. The proposed million-square-foot research and development campus was expected to have positions working in machine learning, artificial intelligence, and software engineering. About 3,000 jobs that pay an average of $187,000 annually were expected to be created. State officials said at the time of the announcement that the project was expected to grow the state’s economy by $79.8 billion over 39 years. The deal includes community and infrastructure contributions from the tech giant amounting to an estimated $1.5 billion in economic benefits to the state. It will also cost the state more than $845 million in tax breaks promised over the next 39 years. The clock began ticking last year for Apple to begin hiring workers, with an obligation to hire a minimum of 126 workers, with an increase of 378 total positions by the end of 2024, and up to 2,700 by 2032. [17824010]
Foxconn, the main iPhone assembly plant in India, has been accused of systematically excluding married women from jobs at its facility near Chennai. The company reportedly believed that married women have more family responsibilities, and cited cultural issues and societal pressures as reasons for not hiring them. Other reasons mentioned include family duties, pregnancy, higher absenteeism, and the interference of jewelry worn by married Hindu women with production. Hiring agencies sometimes helped women candidates conceal their marital status to secure jobs. Apple denied the reports of discrimination and stated that all of its suppliers in India hire married women, including Foxconn. The Indian government has called for a detailed report on the matter and cited the Equal Remuneration Act of 1976, which prohibits discrimination based on marital status in recruitment. Reuters conducted an investigation, speaking to jobseekers and reviewing job ads and records of WhatsApp discussions that indicated the exclusion of married women from assembly jobs. Foxconn acknowledged lapses in hiring practices in 2022 but did not address the discriminatory practices documented in 2023 and 2024 at the Sriperumbudur plant near Chennai. [65610cc5] [2b9da764] [48f8655b] [7c6cb41d]
Taiwanese contract manufacturing giant Foxconn is set to begin producing AI servers at its facilities in Tamil Nadu, India. The move marks a significant expansion of Foxconn's operations in the country, as it is primarily known for assembling Apple's iPhones. Foxconn will use its existing facilities in Tamil Nadu to manufacture AI servers, which are essential for training and running artificial intelligence models. The company already manufactures AI servers for major global tech companies like Amazon, Google, Microsoft, and NVIDIA. Foxconn sees this move as a strategic expansion and expects its share in the global AI server market to increase to 40% this year. Industry experts view the move as a natural progression for Foxconn, as it aims to diversify beyond mobile phone assembly and capitalize on the booming AI and EV markets. Foxconn is also benefiting from India's production-linked incentive (PLI) scheme for IT hardware. The company is aggressively increasing its investments in India, with plans to construct a new factory and a mega factory for iPhones. Foxconn is positioning itself as a key player in the global technology manufacturing landscape. [3867cfb3]
Taiwan's Foxconn, the world's largest contract electronics maker and Apple's biggest iPhone assembler, reported a 19% year-on-year increase in second-quarter revenue. The company also predicted that third-quarter revenue would rise year-on-year. [83ac0108]