Foxconn Innovation Group, Apple’s main setting up partner for iPhones, today revealed (via Reuters) significant strategies to lower its workforce because of “decreasing revenue development and rising salaries in China.” The statement comes mere hrs prior to Apple’s financial revenues news for the initial monetary quarter of 2015, where the company is expected to announce document iPhone sales.

The company doubled its work expenses in current years following a couple of public detractions involving worker suicides and bad working conditions, while income growth has slowed down. After a years of stable boosts following the explosion of appeal for smartphones and tablet devices, mainly thanks to the production of Apple products, Foxconn hasn’t faced the issue of lessening returns previously.

“We’ve basically supported (our workforce) in the last 3 years,” Woo claimed. When asked if the business plans to reduce total headcount, he responded “yes”.

Income development at the empire tumbled to 1.3 percent in 2013 and just partially recuperated to 6.5 percent last year after a lengthy string of double-digit rises from 2003 to 2012.

Today’s news starts the heels of records showing Apple likely marketed even more apples iphone in China than the U.S. in the last quarter, and assumptions the iPhone will certainly have record sales coming off the launch of the iPhone 6 and 6 Plus.

Foxconn’s task cuts have actually not been especially connected to its Apple company, yet Apple is a major consumer and hiring patterns do usually comply with the iPhone product cycle, which should begin to reduce a bit adhere to the rush of consumers updating to the brand-new versions in the early months of availability. Foxconn is likewise stated to be boosting investments in Apple-related areas, consisting of constructing a $$ 2.6 billion screen plant and probably dealing with sapphire screens for Apple items.

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