The Financial Times recently reported that Apple’s main supplier had stopped recruiting due to declining demand of the fifth-generation iPhone.
Hiring freezes were reportedly installed at Foxconn’s major plants in Shenzhen, Zhengzhou, Taiyuan, and Chengdu, which focus on the manufacturing of iPhones and iPads.
The news had led to speculation that Apple and its partners are preparing for the launch of the next generation smartphone, the iPhone 5S.
Production for the new handset was rumored to begin in March, with a possible launch set for June or July.
However, a Foxconn spokesman told Bloomberg that there is no actual connection between the current hiring freeze and the low demand for Apple devices.
The report stated: “Foxconn halted recruitment until the end of March after more employees returned from the Chinese New Year break than a year earlier, Bruce Liu, a spokesman for the Taipei-based company, said today in a phone interview. The decision wasn’t related to iPhone 5 production he said.”