Apple Suppliers to Hire 5,000 New Employees While Analyst Claims ‘Terrible Feb.’ for Apple

Foxconn Factory WorkersOnce again, analysts are living in a different reality than the rest of us. Today, Topeka Capital is reporting that Apple suppliers had a “terrible February” amidst iPad maker’s record sales of tablets. Some of those same Apple suppliers are hiring 5,000 new employees as the tech industry is building up steam. Which leads one to question how these analysts are able to turn a positive upturn for suppliers into a doomsday prediction for Apple.

Last week, Chitika released a report showing that the iPad was leaps and bounds ahead of its nearest competitor for tablet Web traffic. Interestingly, the the report claimed that Apple has begun to “experience increased pressure for its Android competitors” even though the gap between the two is enormous, with the iPad generating 80.5 percent of all tablet Web traffic and the Kindle Fire generation only 8 percent. Huh? How is that pressure for Apple?

Today, Topeka Capital’s Brian White reported [via: Business Insider] that his “Apple Monitor” was terrible for February. White’s Apple Monitor tracks the results of key Apple suppliers and he claims that February’s results were down by 31 percent, which is higher than the normal 8 percent decline in shipment during the Chinese New Year season.

White claims that this is “the worst February we have on record.” He went on to say that Hon Hai, Foxconn’s parent company and Apple’s main manufacturing partner, had a 25 percent drop from January to February.

At the same time, Reuters is reporting that Hon Hai and TSMC are both hiring 5,000 new employees to gear up for the 2013 manufacturing year. If things are so gloom-and doom for suppliers of Apple parts, why would two of its biggest partners be hiring such a large number of new employees?

Taiwan-based newspaper Economic Daily reported that a recruitment notice was recently posted at an event for university students planning to graduate this year. According to the paper, Hon Hai’s hiring event will be the biggest the company has had in recent years. The manufacturing giant will hire for research and development for automated production, e-commerce and robots, while TSMC, one of Apple’s biggest processor chip makers, will be hiring mainly equipment managers.

Yup. It sure does look like this is the untimely end of Apple seeing as how its suppliers have fallen on hard times. I wish U.S. manufacturing companies would fall on such hard times to hire 5,000 new people. Our whole economy would see a huge improvement if only a handful of production plants were doing so poorly.

About Lory: Writer of all things app related, traveler of the space-time continuum, baker of really great cookies. Follow me @appaholik

  • S J

    You have to learn to see through the BS…..a lot of the ” positive ” stories coming out about Apple at the moment all originate from Apple’s own PR machine, so take them all with a pinch of salt. The info about the suppliers slowing right down is actually true and comes from many more than a single source, so do the maths. If multiple sources, who have no connection to each other at all, are all saying one thing, then it might just be true…..But hey in the world of Apple, the truth simply doesn’t exist, so lets see what the figures say at the end of the quarter.