Apple Inc. (NASDAQ:AAPL)’s suppliers show no sign of dealing with slowing demand for the company’s products. Foxconn and TSMC are each expected to add about 5,000 jobs, according to Reuters, which cited the Taiwanese publication Economic Daily. Both companies have started posting job notices aimed at graduating university students in Taiwan.
AppleInsider reports that this hiring surge is the largest one in recent years for Hon Hai Precision, which is the parent company of Foxconn. Most of the new positions at the company are reportedly in the research and development area. The positions will focus on automated production, robots and e-commerce. TSMC however, is looking for equipment managers.
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It’s believed that the two major suppliers are gearing up for increased demand, although that goes against what some analysts say they have found. Topeka Capital’s Brian White said his checks indicate that Apple Inc. (NASDAQ:AAPL)’s sales for February were down at a much higher rate this year than they were last year due to seasonal demand.
However, analysts at Credit Suisse said they had a call with Apple Inc. (NASDAQ:AAPL) CFO Peter Oppenheimer, who indicated “several longer term growth drivers.” Thus, they have reiterated their Outperform rating and $600 per share price target for shares of Apple Inc. (NASDAQ:AAPL).
In a report issued to investors, the analysts said they don’t think iPhone saturation is as high as some believe. They also believe that current data indicates that the high-end smartphone market will push higher, up to “unprecedented levels.” They predict that Apple Inc. (NASDAQ:AAPL) can add 65 million units “through carrier expansion alone.”