Foxconn hiring freeze hurts Apple stock

February 21, 2013

Due to reduced demand for the iPhone 5, Foxconn has put a hiring freeze in place at most of its Chinese factories. As a result, Apple’s stock suffered a bit Wednesday.

“Currently, none of the plants in mainland China have hiring plans,” Liu Kun, a company spokesman at Foxconn’s largest manufacturing facility, in the southern Chinese city of Shenzhen across the border from Hong Kong, told Financial Times.

“Human resources officials at Foxconn’s largest factories, local government officials and external recruiters working with the company said there had been internal notices on Tuesday and Wednesday to halt hiring until at least the end of March, in response to reduced orders for the iPhone 5.”

Shares of Apple dropped 1.6 percent to $452.60 after the new posted. Ah, remember those days before the iPhone 5 when stock hit $700 per share?

Following the busy holiday season, iPhone sales dropped, as Apple began a quick rollout into 100 markets for the taller smartphone. Gigaom.com points out that it was the fastest rollout ever, “so the hiring halt could simple be a seasonal response.”

In a investor call last week, Apple CEO said he expects to see the iPhone market grow even more. “Frankly speaking, I see a wide open field. It may surprise you, but iPhone iso nay available to about 50 percent of the subscribers in the world.”

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