The slowing of the smartphone market, in particuar iPhones sales, has been attributed to the cutting of thousands of seasonal jobs in China as manufacturers address lower-than-expected demand.
This scale-back of seasonal workers usually happens due to seasonal changes in smartphone sales, however what is unexpected is how early this reduction of workers took place. Comapnies across the supply chain are having to react to this, with major iPhone suppliers like Foxconn and Pegatron reportedly cutting tens of thousands of contracts since November 2018.
This also comes as Foxconn plans a major restructuring, which aims to cut 10% of its 1.1 million strong workforce. Perpahs pointing to broader issues within the industry which could be a result of the poor performance of major customers like Apple, combined with ongoing economic/trade tensions between the US and China.
Read the full article here.