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Foxconn said to be producing 150k iPhone 5 units per day

post #1 of 32
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A new report claims Foxconn Electronics has ramped up production of Apple's fifth-generation iPhone to 150,000 units per day, with shipments expected to reach 5-6 million in September.

Taiwan's DigiTimes reported on Thursday that Apple's iPhone 5 suppliers have geared up production and will soon begin volume shipments of the new device. Industry sources provided the publication with the 150,000 unit per day production figure for OEM Foxconn.

Meanwhile, sources also said lens maker Largan Precision, touch panel maker TPK Holding, reinforced glass supplier G-Tech Optoelectronics and battery vendors Simplo and Dynapack "are all operating at full swing currently," according to the report.

iPhone 5 shipments are expected to be in the range of 5-6 million this month and top 22 million in the fourth quarter as Apple reduces shipments of the GSM and CDMA models of the iPhone 4.

The report also echoed an earlier claim reportedly from a Chinese source that Pegatron has received orders to produce a 15 percent share of Apple's new smartphone. However, DigiTimes' sources said the company may not begin shipping until 2012.

It should be noted that the publication has a mixed tracked record with Apple predictions, though it does tend to have well-placed suppliers within the Asian supply chain.

Apple is now believed to be planning to launch the iPhone 5 in October. Recent leaks from retailer Best Buy point to next month, though there is some disagreement about the specific timing of the release.

An alleged "test photo" has surfaced online that appears to provide further confirmation that the next-generation iPhone will feature an 8-megapixel camera with improved performance. The handset is also expected to feature the A5 processor currently used in the iPad 2.

Photo allegedly taken by an Apple engineer with an iPhone 5. Click to see full-size.
post #2 of 32
150k per day? I just want ONE. On a more serious note, how does that compare to the last launches? Is this going to be sold out until new year if it hits in October?
post #3 of 32
Cant wait to see it, but of course wont be able to upgrade for a while cause got a verizon iphone 4.
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post #4 of 32
150k units of iphone 5? how about the cheaper version of the 4?

I fear 22 million units before the holiday season and after over a year from the release of the 4 won't be enough.
post #5 of 32
Quote:
Originally Posted by OriginalG View Post

150k units of iphone 5? how about the cheaper version of the 4?

I fear 22 million units before the holiday season and after over a year from the release of the 4 won't be enough.

Whatever Apple's manufacturing partners can produce it still won't be enough. That's one reason why Apple staggers the international release over months.

Apple sold a record 20 million iPhones last quarter, nearly a year after the iPhone 4 release.If supply and demand had reached a balance last quarter shouldn't have been a record.

Concerning iPhones, there is more demand than supply.
post #6 of 32
Those Foxcon workers don't have to worry about losing their jobs. The demand is going to be far more than the IPHONE 4 now that people have been waiting an extra 3 months.
post #7 of 32
I won't not buy one.
post #8 of 32
Quote:
Originally Posted by ChristophB View Post

I won't not buy one.

Since you used a double negative, this means you will buy one. I appreciate your efforts in contributing to Apple's gross margin and net income.

Thank you very much.

Sincerely,

An AAPL shareholder.

post #9 of 32
I wouldn't be surprised if Apple will also be selling an upgraded iPhone 4 along with the iPhone 5. There's going to be a lot of bitching, otherwise as the bloggers starting claiming Apple has poor planning since Foxconn isn't producing iPhones fast enough after stores run short. Apple is going to break more sales records with the iPhone and Wall Street will still yap about how the iPhone is losing market share to all those companies producing Android smartphones. I'm not sure why Wall Street would expect Apple to produce more iPhones than a half-dozen or so large Android smartphone vendors, but I guess that's how pin-striped knuckleheads think. My only hope is that there are no production glitches with the iPhone 5 and that everything works well.
post #10 of 32
Wow. Amazing how they can produce 150,000 units every day and we haven't seen any pictures/leaked units. I look forward to seeing it! My girlfriend will probably get one - I guess I'll have to live vicariously through her
post #11 of 32
That's a lot of phones. I can't wait to read more about it.
post #12 of 32
That's not gonna be enough!

We're gonna need a bigger boat...
post #13 of 32
Quote:
Originally Posted by Michael Scrip View Post

We're gonna need a bigger boat...

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post #14 of 32
Amazing how these factories can be locked down so tight. I wonder if that is a good thing.


Quote:
Originally Posted by jd_in_sb View Post

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It's a quote from Jaws.
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post #15 of 32
Quote:
Originally Posted by solipsism View Post

Amazing how these factories can be locked down so tight. I wonder if that is a good thing.

150K per day is just insane. Someday perhaps a documentary about Apple will see the light of day and show Foxconn from beginning to end video how they make the iPhone and how they manage to make such a huge amount of units. That would just be a manufacturing feast for the eyes.

It's truly impressive the scale of popularity the iPhone is to warrant such capacity.
post #16 of 32
Quote:
Originally Posted by sflocal View Post

150K per day is just insane. Someday perhaps a documentary about Apple will see the light of day and show Foxconn from beginning to end video how they make the iPhone and how they manage to make such a huge amount of units.

Foxconn employs over 1.2 million people so they can dedicate 1 employee per iPhone per day and still have over 95% of their workforce available for other manufacturers. That's why only Eastern countries can do this. Apple only employs 35000 staff worldwide . If they had to do this manufacturing themselves, they wouldn't make anywhere near the profits they do after clearing a Western payroll with even 250k workers.
post #17 of 32
I suspect there will be a huge rush when 5 comes out. They will likely be back logged for months.
post #18 of 32
I'm in line. Where's the juice and cookies?
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post #19 of 32
Quote:
Originally Posted by wizard69 View Post

I suspect there will be a huge rush when 5 comes out. They will likely be back logged for months.

Yeah. I know that I'll be pre-ordering mine the day that they start accepting pre-orders. Of course, that is assuming that I can get on the website to do the pre-order in the first place. I really don't want to go thru the whole 10 hour wait in line again to get mine from a store. I figure that if you don't get your order thru online in the first hour or 2 you are going to be SOL.
post #20 of 32
Where is the ipod/aTV event this year? I got the feeling we will get our new toys with no event to announced them.

I guess its a way to avoid the lines, you wake up one morning and boom, new ipod/iphone/aTV are selling everywhere.
post #21 of 32
I've always been amazed that Foxconn produces hundreds of thousands of iPhones before a launch and yet the leaks of the device often come from Apple's own campus.
post #22 of 32
Quote:
Originally Posted by herbapou View Post

Where is the ipod/aTV event this year? I got the feeling we will get our new toys with no event to announced them.

I guess its a way to avoid the lines, you wake up one morning and boom, new ipod/iphone/aTV are selling everywhere.

They will do an event. Apple is a publicity whore like that.

Plus if they have new carriers, they'll want to give them some air time too.
post #23 of 32
Quote:
Originally Posted by Jetz View Post

They will do an event. Apple is a publicity whore like that.

Plus if they have new carriers, they'll want to give them some air time too.

They didn't give any time to Verizon. Verizon held their own event. However, in the case of Verizon with different cellular internals they didn't want the iPhone 4 to be seen as different devices, but the same device on different carriers. But now that CDMA is added it might behoove them to mention any new US carriers, but I think it can go either way.
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post #24 of 32
Quote:
Originally Posted by herbapou View Post

Where is the ipod/aTV event this year? I got the feeling we will get our new toys with no event to announced them.

I guess its a way to avoid the lines, you wake up one morning and boom, new ipod/iphone/aTV are selling everywhere.

I bet we hear about the event within 8 days.
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post #25 of 32
Quote:
Originally Posted by Marvin View Post

Foxconn employs over 1.2 million people so they can dedicate 1 employee per iPhone per day and still have over 95% of their workforce available for other manufacturers. That's why only Eastern countries can do this. Apple only employs 35000 staff worldwide . If they had to do this manufacturing themselves, they wouldn't make anywhere near the profits they do after clearing a Western payroll with even 250k workers.

I always wonder about this. Foxconn made nearly $1 billion for the first half of 2011. And will make much, much more for the second half of 2011. So even if Apple were to do the manufacturing themselves, surely there's room to pay western wages in those profit margins.

Perhaps in a right-to-work state or in Eastern Europe....
post #26 of 32
Quote:
Originally Posted by solipsism View Post

I bet we hear about the event within 8 days.

That would make sense. Considering that the expectation is to have an event in September and I believe that they need about 10 days press notice that would put an announcement event in the last week of September. We could also expect to see a reservation confirmation for such an event pretty much any day now.
post #27 of 32
Quote:
Originally Posted by Jetz View Post

I always wonder about this. Foxconn made nearly $1 billion for the first half of 2011. And will make much, much more for the second half of 2011. So even if Apple were to do the manufacturing themselves, surely there's room to pay western wages in those profit margins.

Perhaps in a right-to-work state or in Eastern Europe....

We were talking about this exact thing just yesterday at work. There is definitely plenty of room in the profit margin for Apple to manufacture their products domestically, and then I'm sure there are some savings in having the manufacturing local. The problem there is a public company is pretty much required to maximize their shareholders profits. Kind of hard to justify taking a 20% hit in profitability to move the manufacturing back stateside. I'm all in favor of it personally, and would be even if I were an Apple shareholder but...
post #28 of 32
Quote:
Originally Posted by svnipp View Post

The problem there is a public company is pretty much required to maximize their shareholders profits.

Legally maximize profits. That is why China is so great for a giant corporation like Apple, because they don't have to abide by all the horrible intrusive regulations like they have in the US. They can pay children to work at near-starvation wages and not worry nearly as much about dumping toxic waste.

Have you seen the rise in Apple's market cap lately? Just wait until they start building factories in countries like Bangladesh and Somalia. It will make China look ... well, Socialist in comparison.
post #29 of 32
Based on that photo, the alleged iPhone 5 appears to be designed like a plate of sushi. The next Samsung phone will look suspiciously like a plate of Korean BBQ. And the lawyers will be at it again.

"Apple should pull the plug on the iPhone."

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"Apple should pull the plug on the iPhone."

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post #30 of 32
I can confirm that the photo was takn by an engineer. There is lots of good light and detail, and zero creativity in the composition

My iPhone 4 is in mint condition after 1+ years, seems to be working well with ios5 beta and I can't see me upgrading just for megapixels. But something tells me the 5 will ba a must have.
post #31 of 32
Quote:
Originally Posted by ConradJoe View Post

Legally maximize profits. That is why China is so great for a giant corporation like Apple, because they don't have to abide by all the horrible intrusive regulations like they have in the US. They can pay children to work at near-starvation wages and not worry nearly as much about dumping toxic waste.

Have you seen the rise in Apple's market cap lately? Just wait until they start building factories in countries like Bangladesh and Somalia. It will make China look ... well, Socialist in comparison.

You do realize that Apple doesn't actually build the units, right? Apple contracts Foxconn, as does Acer, Amazon, Azus, Intel, Cisco, HP, Dell, Microsoft, Nintendo, Nokia, Sony, and Vizio. Dumping all the 'horrible conditions' in Apple's lap is very much seeing only what you want, oblivious to little things like "facts".
post #32 of 32
Quote:
Originally Posted by Jetz View Post

I always wonder about this. Foxconn made nearly $1 billion for the first half of 2011. And will make much, much more for the second half of 2011. So even if Apple were to do the manufacturing themselves, surely there's room to pay western wages in those profit margins.

Perhaps in a right-to-work state or in Eastern Europe....

Actually they have lost money for the last 18 months

http://www.bbc.co.uk/news/business-14711929

As you can see from this article Apple is nowhere near their biggest customer.

The minimum wage in Shenzhen which is where most of the factories for consumer electronics are went up by 20% this year after a near 16% increase last year. Even with this it is getting harder to recruit workers. So there will be a move to other countries at some point. Some parts of Eastern Europe actually come close on cost of operation when you consider reductions in lead times due to transit time.

As for children. It is illegal to employ children in China and factories are heavily penalised by customers and government alike if they are caught.
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