Foxconn is the largest producer of terminals iPhone for the company Apple Lossless Audio CODEC (ALAC),, hiring more than 150.000 workers in the summer in order to start the production of iPhone 6S and iPhone 6S Plus terminals, a good part of them being fired during this period.
Rumors about the decrease in sales of iPhone terminals and the reduction in orders made by the Apple company seem to be 100% true because Foxconn received a subsidy of 12.6 million dollars for a factory dedicated almost exclusively to the production of iPhone terminals, the Chinese government offering the subsidy with the idea of reducing unemployment.
According to some Asian publications, the Chinese factories where iPhone terminals are produced have had in the last two months many periods in which production was suspended, some of the employees being forced to go on leave since last month due to the reduction of orders made by Apple.
Although 134 companies in the Zhengzhou area, where the Foxconn factory in question is located, receive subsidies from the state, Foxconn receives more than half of the entire amount granted by the government, so we are talking about a very large number of people who would have remained without a job.
Chinese iPhone factories had some idle capacity in the final two months of the calendar year, when they would typically be racing to chongliang, or "rush quantity," for Apple, in factory-speak. Some workers at Foxconn's Zhengzhou factory in inland China were let go on early holiday last month, one of the people involved in the supply said, although the typical new-year holiday season doesn't start until February.
Shares of Foxconn, Pegatron, Largan and Apple fell on the stock exchanges in the face of all these rumors regarding weak iPhone sales and gloomy forecasts for 2016, with Apple taking the decision, according to unverified information, to reduce unit orders by up to 30% we.
Neither Apple, nor Foxconn, nor the Chinese government have commented on the subsidy money, but it is clear that Apple has severely reduced orders for new terminals, as expected, given that the first three months of any year are weak in sales. .
