Foxconn Apple Factory: While it only makes sense that Apple Inc. (NASDAQ:AAPL) controls its own hiring, many overlook just how powerful the company has become. In many circumstances, such as the one being reported on by Bloomberg, the Cupertino-based company indirectly controls the moves being made by its suppliers.
According to sources cited by Bloomberg, Foxconn Technology Group, one of Apple Inc. (NASDAQ:AAPL)’s largest suppliers, has resumed hiring at its Chinese factory.
While Foxconn Technology Group does not work solely with Apple, it is important to note that this relationship is extremely important to both companies. Despite the fact that Foxconn is the largest custom manufacturer of electronics in the world, when Apple Inc. comes calling they are sure to listen.
So, what is the reason for the pick up in hiring? In short, this is due to the fact that Apple is getting ready to roll out its next generation iPhone at some point in the near future. With this in mind, the iPhone maker needs “all hands on deck” across its supply chain.
For Foxconn Technology Group, this is a big deal since the company has been dealing with a hiring freeze since February 2013.
While the company has more than one plant, new workers are being brought on at its Zhengzhou location in eastern China.
The Bloomberg article goes on to add that the new workers will be used to not only assemble the new Apple Inc. (NASDAQ:AAPL) iPhone but to also work on existing model.
Perhaps the most important nugget of information is this: the source added that Apple asked Foxconn to hire more people to ensure it can meet capacity requirements.
It goes without saying that Apple Inc. (NASDAQ:AAPL) does not want to run into any supply chain issues with its new iPhone. The company is facing a lot of heat from the competition, including Samsung and HTC Corp.
A Foxconn Technology Group representative, Liu Jun, was contacted by Bloomberg to discuss how many employees would be hired. While he declined to comment, it is important to note that the facility in Zhengzhou already employs more than 250,000 workers.
Once again, Apple Inc. (NASDAQ:AAPL) is flexing its muscle and getting what it wants. Of course, this is not a bad thing for either party involved. After all, Foxconn has to enjoy the fact that they are relied upon so heavily by one of the top tech companies in the world.
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DISCLOSURE: I have no positions in any stock mentioned.
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