The news that Foxconn was freezing hiring for the iPhone sent shivers through Wall Street recently, but a new report from DigiTimes this morning provides a truer context to the original rumor; one that has nothing to do with trouble with the iPhone.
According to this morning's report, rumors have started circulating in the IT market that Foxconn is considering moving its investment focus from China to countries such as Brazil, Indonesia, Taiwan and the US.
Yet there may be more to this story that we're still not getting. This rumor also supports an odd caveat to FLEXium Interconnect gaining an Apple contract for iPhone 7 flexible circuits. It was reported on February sixth that the one caveat that FLEXium had to abide by to get the contract was to move their production to Taiwan. That Taiwan Government stated that they would grant FLEXium a suitable location to secure the contract with Apple.
It would appear that Apple may be demanding that their suppliers make Apple products outside of China. It's impossible for FLEXium to have been the only Apple supplier being forced to move out of China and so today's rumor about Foxconn moving production out of China seems in line with what occurred with FLEXium.
In the end, it would appear that Wall Street jumped to conclusions over the rumor of the hiring Freeze at Foxconn.
Related Material: Foxconn: Our hiring freeze has nothing to do with iPhone 5