It’s been all over the news lately that Apple and Foxconn have run into employee woes. Due to the conflicting reports over strikes and production shortages, Apple is reportedly outsourcing production of the iPhone 5 to a subsidiary of Foxconn to meet consumer demand.
According to Reuters, Apple is moving production to Foxconn International Holdings [FIH] to make up for the troubled production woes at the standard Foxconn plant that usually produces iPhone 5 handsets. The article stated that…
“Shares of FIH, which assembles handsets for the likes of Nokia Oyj, Huawei Technologies Co Ltd and ZTE Corp, rose as much as 10.2 percent to a high of HK$3.35 in early trade, the strongest intraday level since June….
…The sharp rises were attributed to a brokerage report from Daiwa Capital Markets saying that FIH was likely to get iPhone orders soon, even though it does not currently assemble Apple products.
“Our industry research indicates that FIH is likely to start producing iPhones in late 2012 or early 2013,” Daiwa said.”
So long as Foxconn doesn’t drive its employees to the brink of a breakdown this is probably good news for workers at FIH as it keeps more people working and more money in their pockets. Only time will tell if this move helps keep Apple’s supply of iPhone 5s up to par with the worldwide demand from consumers.