Foxconn Technology Co., Ltd. (TPE:2354) has announced a hiring freeze. The company, which is the largest electronics manufacturer in the world, is probably best known as the manufacturer of Apple Inc. (NASDAQ:AAPL)’s iPhone 5.
The Financial Times reported that the hiring freeze came just in time as production of the iPhone 5 began to slow. However, a Foxconn Technology Co., Ltd. (TPE:2354) spokesman told Bloomberg that the freeze was instituted because more of the company’s workers came back from the Chinese New Year holiday break than did the previous year. The hiring freeze is expected to remain in place through the end of March, if not longer.
Investor concerns about weak iPhone demand are not new, and today’s hiring freeze at Foxconn Technology Co., Ltd. (TPE:2354) only adds fuel to the fire. However, it hasn’t yet had a major impact on shares of Apple Inc. (NASDAQ:AAPL) just yet, as the stock has lost less than 2 percent of its value so far today.
New information from Strategy Analytics also indicates that concerns about lack of iPhone 5 demand may be unfounded. The research firm found that Apple Inc. (NASDAQ:AAPL) shipped 27.4 million units during the holiday quarter. That added up to about 13 percent of all the smartphones that were shipped around the world during the quarter.
Strategy Analytics also reported that the iPhone 5 and the iPhone 4S are the two most popular smartphones in the world. In all they added up to 21 percent of all smartphones sold, and that doesn’t even include the iPhone 4, which is offered free with new mobile contracts.