Foxconn says hiring freeze not related to Apple

Foxconn says hiring freeze not related to Apple
According to a story in Wednesday's Financial Times, a slowdown in sales of the Apple iPhone 5 has led contract manufacturer Foxconn to impose a hiring freeze until March comes to an end. Exane BNP Paribas analyst Alexander Peterc says that Apple will sell 20% fewer Apple iPhone units in the current quarter than the amount sold in the previous three month period. "It's a big slowdown," says the analyst.

Foxconn was forced to implement the hiring freeze after more of its workers returned from the Chinese New Year break than the number that came back to the factory after last year's break. This means that fewer new workers need to be recruited, but also allowed speculation to spread that the slowdown in iPhone sales was the reason for the hiring freeze. As some rumors do, this one grew wings and flew all the way to Wall Street where it has had a little impact on Apple's shares, which are down almost 2% Wednesday. Foxconn itself says that the hiring freeze has nothing to do with Apple. Bruce Liu, a spokesman for the contract manufacturer, denied that a slowdown in the production of Apple devices is related to the freeze.

Meanwhile, UBS analyst Steve Milunovich told clients that while production of Apple's iconic smartphone had declined in December, there has been no change since. Milunovich's theory is that the hiring freeze at Foxconn is related to Hewlett Packard. HP makes up 8%-10% of Foxconn's revenue according to the analyst, who says that the problems affecting Dell's PC line could also be affecting HP's computer products.

source: Bloomberg via Forbes

Related phones

iPhone 5
  • Display 4.0" 640 x 1136 pixels
  • Camera 8 MP / 1.2 MP front
  • Processor Apple A6, Dual-core, 1300 MHz
  • Storage 64 GB
  • Battery 1440 mAh(8h 3G talk time)

FEATURED VIDEO

9 Comments

1. _Bone_

Posts: 2155; Member since: Oct 29, 2012

Those rumors big companies care to deny usually hold some truth.

2. gallitoking

Posts: 4721; Member since: May 17, 2011

because the world does revolve around Apple

3. rusticguy

Posts: 2828; Member since: Aug 11, 2012

And Apple revolves around Android innovations :D

5. gallitoking

Posts: 4721; Member since: May 17, 2011

so coming in with devices with bigger screens are innovation really?... cool now I know.

6. Furbal unregistered

According to the iPhone 5, bigger is; iPad mini smaller is...

7. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Exactly why iphone 4 to 4s to 5 is not innovation.

4. ZeroCide

Posts: 816; Member since: Jan 09, 2013

No just Foxconn's world. They were drinking the kool-aid and its running low.

8. arfinkhan

Posts: 25; Member since: Feb 07, 2013

so coming with quad core 2gb ram is it innovation?

9. arfinkhan

Posts: 25; Member since: Feb 07, 2013

innovation is super sensitive screen,pure motion hd+display,optical image stablisation,,pure view,clear black, penta band lte 3g.41 mega pixel through over sampling.this is innovation

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.