Foxconn Axes 50,000 Seasonal Jobs as Apple Slowdown Bites

Discussion in '[H]ard|OCP Front Page News' started by Megalith, Jan 20, 2019.

  1. Megalith

    Megalith 24-bit/48kHz Staff Member

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    Foxconn’s most important iPhone factory at Zhengzhou will be 50,000 employees lighter due to reduced iPhone demand. Seasonal reductions, even at this scale, aren’t out of the ordinary, but the latest cuts have occurred earlier than usual, which suggests the industry’s “severe” downturn is very much real. “A source close to the company said its normal practice was to reduce the 200,000-strong head count by tens of thousands every month…and for [2018], it just happened sooner than in the past because of poor demand."

    Other important iPhone suppliers have let workers go much earlier than usual as they struggle with slower-than-expected demand for Apple's iconic product. The California tech giant earlier this month shocked the market by warning of a slump in revenues at the end of 2018. This year is also shaping up to be difficult, with further declines expected in the smartphone market, while the ongoing U.S.-China trade war is taking a heavy toll.
     
    Last edited: Jan 20, 2019
  2. Joust

    Joust [H]ard|Gawd

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    Trade war has nothing to do with it. Mass-adoption segment is running out of ability to pay as quickly as Apple is turning these out.
     
  3. nightanole

    nightanole [H]ard|Gawd

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    Really, do you need anything better than an iphone 6s at this point? If an iphone 6 is good enough for a daily driver, it doesnt mater if the latest is 3x faster. The 2019 Q4 phone could be 50% faster than last years, does it matter if its 5x faster than a 6s?
     
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  4. SamuraiInBlack

    SamuraiInBlack [H]ardness Supreme

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    When you stop giving people a reason to upgrade, people start looking at their options.
     
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  5. y0bailey

    y0bailey Gawd

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    But it has liquid retina display!!! LOL. Are people finally catching on the apple's marketing bullshit and realizing they are paying $500+ for a 720p screen in 2019?
     
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  6. alamox

    alamox Gawd

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    nop , not yet
     
  7. steakman1971

    steakman1971 2[H]4U

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    The growth phase was over a few years ago. We are in the ho-hum phase. It's not just Apple - Samsung is feeling the pain as well.
    What will this years devices have? Slightly faster processor, improved camera, maybe a better GPU? I rarely play games on my phone - therefore, I don't care about the GPU. I mainly use my phone for calls, text, weather, driving directions, streaming audio, email, Reddit, camera. I might do a few other things, but that's my main screen and the apps I use the most. A phone from 3 years ago could handle all of these tasks just fine.
     
  8. GlowingGhoul

    GlowingGhoul Whines about Whiners

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    What really, really screwed over iPhone sales was Apple finally getting busted for slowing older phones via a hidden 'battery management' system that reduced performance based on battery age, supposedly to ensure customers got a full day's worth of use.

    Once they were forced to reveal that planned obsolescence feature, and give users the ability to turn it off, people realized their phones weren't slow because they were older, but were being artificially hobbled.

    There really is little reason, besides the upgraded cameras if you're a serious picture taker, to go beyond an iPhone 6 now.
     
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  9. aokman

    aokman Gawd

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    Are people catching on to androids bullshit chips that are 2 generations behind Apple :ROFLMAO:

    I tried turning battery management off and the phone started turning itself off randomly under low battery load, same as my Galaxy Note used to do, god forbid they try to extend the batteries life...
     
  10. Ocellaris

    Ocellaris Ginger @le, an alcoholic's best friend.

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    Logic: Raise prices -> sell less phones

    Apple: You can’t explain that
     
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  11. nutzo

    nutzo [H]ardness Supreme

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    It's also the cheap battery replacements offered because of this.

    A lot of people had their batteries replaced, and no longer have the need to replace the phone.

    I know several people who want to replace their iPhones, but simply can't afford the current pricing.
    They don't want to switch to android, so they just keep using their old iPhones as long as possible.

    If Apple offered something in the $500 price range they would likely upgrade.
     
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  12. Ocellaris

    Ocellaris Ginger @le, an alcoholic's best friend.

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    Definitely this too. I think Apple’s strategy of selling old phones to fill in low price points is bad. Like right now a new iPhone 7 is $449. If they sold a phone at that price with some newer tech I think it would sell spectacularly. Few people want to buy a two year old iPhone 7, there’s just a stigma around it.
     
  13. y0bailey

    y0bailey Gawd

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    Display you look at every time you use a device vs. a chip that most people never use 1/2 of the "power" of by looking at instragram photos?
     
  14. aokman

    aokman Gawd

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    Can you see the pixels? No

    You dont put a 4k display in a phone just because you can...

    /end argument
     
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