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Foxconn building 500K iPhone 5s units for Apple per day with nonstop production lines

post #1 of 40
Thread Starter 
In a bid to increase supply of Apple's flagship iPhone 5s, Foxconn --?the company's largest manufacturing partner --?has dedicated 100 assembly lines to the handset and is now operating 24-hours-per-day, according to Foxconn executives.

Foxconn


More than 300,000 employees at Foxconn's Zhengzhou, China factory are working exclusively on iPhone 5s production, reports The Wall Street Journal. The production increase appears to have significantly eased supply constraints --?yesterday, AppleInsider noted research from Piper Jaffray analyst Gene Munster suggesting that more than 90 percent of iPhone 5s SKUs were available in retail channels, indicating that Apple's supply chain has nearly caught up with market demand.

Shipping estimates from Apple's first-party online store have dropped from 2-3 weeks to just 3-5 days, and Apple retail stores that previously required reservations for in-store purchases of iPhone 5s units --?like those in Hong Kong --?have removed that restriction.

The report suggests that supplies of the popular handset were limited so severely at launch due to a marked increase in manufacturing capacity over its predecessor. The iPhone 5s is said to require 600 workers per assembly line versus 500 workers per assembly line for the iPhone 5, thus increasing the total assembly time for each unit.

The Zhengzhou facility's current 500,000-units-per-day volume is said to represent maximum capacity for the plant, and Foxconn is hesitant to add additional capacity in light of fears that it could lose future Apple contracts to competitors Pegatron and Wistron. Reports began to surface over the summer that Apple was aiming to diversify its Asian supply chain in order to decrease its dependence on Taiwan-based Foxconn.
post #2 of 40
Mr. McGuire: I just want to say one word to you. Just one word.
Benjamin: Yes, sir.
Mr. McGuire: Are you listening?
Benjamin: Yes, I am.
Mr. McGuire: ROBOTS.
post #3 of 40

funny how all the rumors are now POSITIVE.

 

increased 5S production

increased Mini production

New products

 

The powers that be really want this stock to go up now.  Apple has been punished by these same powers from Oct2012 till now. 

 

$600 by year end

$700 in six months

 

We could see ATH if the new products are amazing and gross margins go over 40% in 2014

post #4 of 40
With 300k people and 500k units that's less than 2 iPhones per day per person. Let's speed it up slaves people. Seriously though, I'm guessing most of these employees are not working on the iPhone.

The bigger question is 500k per day seems to be about 5 million high for the quarter (unless China Mobile is going to be a crazy-high breakaway success in December and into the new year) unless Apple is stockpiling now so they can shift manufacturing gears in the not-to-distant-future for a new product offering. It's been awhile since we had a Jan-Mar product launch.

"The real haunted empire?  It's the New York Times." ~SockRolid

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #5 of 40
I don't believe negative or positive stories about Apple from the WSJ or the NYT. It all looks like clickbait to me.

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post #6 of 40
Reporter: I'm sorry, but is Apple increasing or decreasing production? Is demand falling or remaining high? Is Apple doomed or not?
Analyst: let's flip a coin to find out.
post #7 of 40
Quote:
Originally Posted by sog35 View Post
 

funny how all the rumors are now POSITIVE.

 

increased 5S production

increased Mini production

New products

 

The powers that be really want this stock to go up now.  Apple has been punished by these same powers from Oct2012 till now. 

 

$600 by year end

$700 in six months

 

We could see ATH if the new products are amazing and gross margins go over 40% in 2014

 

 

Bingo. The powers that be want the stock to go up. As such previously spun negative news will be turned into positive news.

post #8 of 40

Windows survivor - after a long, epic and painful struggle. Very long AAPL

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Windows survivor - after a long, epic and painful struggle. Very long AAPL

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post #9 of 40
Originally Posted by Red Oak View Post
SolipsismX,  What an awful comment  

 

Hardly. He’s mocking the ones who call them that.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #10 of 40
Quote:
Originally Posted by jungmark View Post

Reporter: I'm sorry, but is Apple increasing or decreasing production? Is demand falling or remaining high? Is Apple doomed or not?
Analyst: let's flip a coin to find out.

Noooo, it's not random at all ... it's "let's see what we can make the most money saying today"
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From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
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post #11 of 40
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Originally Posted by msimpson View Post

Mr. McGuire: I just want to say one word to you. Just one word.
Benjamin: Yes, sir.
Mr. McGuire: Are you listening?
Benjamin: Yes, I am.
Mr. McGuire: ROBOTS.

You got that right ... Robots running 3D LiquidMetal Printers maybe .... But I am hopeful these will be Robots that live and work right here in America. 1biggrin.gif
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
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From Apple ][ - to new Mac Pro I've used them all.
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Google Motto "You're not the customer. You're the product."
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post #12 of 40
Quote:
Originally Posted by SolipsismX View Post

With 300k people and 500k units that's less than 2 iPhones per day per person. Let's speed it up slaves people. Seriously though, I'm guessing most of these employees are not working on the iPhone.

The bigger question is 500k per day seems to be about 5 million high for the quarter (unless China Mobile is going to be a crazy-high breakaway success in December and into the new year) unless Apple is stockpiling now so they can shift manufacturing gears in the not-to-distant-future for a new product offering. It's been awhile since we had a Jan-Mar product launch.

One hundred lines x 600 workers each = 60,000 workers on iPhone assembly. Times 3 for 3 shifts, that's 180,000. An amazing figure, but there must be 120,000 support workers also, apparently, to make up the 300,000.

Each line makes 5,000 phones per day. (500,000 divided by 100)

If there are three shifts, that works out 208 phones per hour on each of the 100 lines.

Only 3.5 phones per minute pass through the workers' hands. That seems to have the scent of validity.

(These figures should be checked by an actual, reliable other person who enjoys this kind of thing,)

Edit: A comment on Apple 2.0 suggests that the day should be divide into four shifts, not three. Maybe so, even at Foxconn in China.
Your point that the production is ahead of demand by 5 million is interesting.
Edited by Flaneur - 11/28/13 at 7:34am
post #13 of 40
Quote:
Originally Posted by SolipsismX View Post

With 300k people and 500k units that's less than 2 iPhones per day per person. Let's speed it up slaves people. Seriously though, I'm guessing most of these employees are not working on the iPhone.



The bigger question is 500k per day seems to be about 5 million high for the quarter (unless China Mobile is going to be a crazy-high breakaway success in December and into the new year) unless Apple is stockpiling now so they can shift manufacturing gears in the not-to-distant-future for a new product offering. It's been awhile since we had a Jan-Mar product launch.

 



Well look who's back!

At first glance 500k a day does seem large for just the 5s, but it might to make sense if the 4s and 5c are included(understand the article did not say, but they have been wrong from time to time). But here's hoping that something new is brewing.
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post #14 of 40
Where the ? in the article title.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #15 of 40
One of the multiple reason why I like this site is in the forum of this article. Number crunching, thorough analysis. Although maybe not precise to the unit, these breakdowns make sense and are thoughtful. Just wanted to share this thought and thank all the posters.
post #16 of 40
Quote:
Originally Posted by digitalclips View Post


You got that right ... Robots running 3D LiquidMetal Printers maybe .... But I am hopeful these will be Robots that live and work right here in America. 1biggrin.gif

 

Uh we'd be better off having the 300,000 jobs for people rather than robots. Problem is with the scale and of course getting lazy Americans off welfare to make minimum wage.

Disclaimer: The things I say are merely my own personal opinion and may or may not be based on facts. At certain points in any discussion, sarcasm may ensue.
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Disclaimer: The things I say are merely my own personal opinion and may or may not be based on facts. At certain points in any discussion, sarcasm may ensue.
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post #17 of 40
Quote:
Originally Posted by mjtomlin View Post

Uh we'd be better off having the 300,000 jobs for people rather than robots. Problem is with the scale and of course getting lazy Americans off welfare to make minimum wage.

Robots aren't going to be getting less capable going forward. Any low-skill worker needs to step it up or they will be permanently displaced.

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post #18 of 40
Originally Posted by mjtomlin View Post

Uh we'd be better off having the 300,000 jobs for people rather than robots.

 

I disagree. Any job that doesn’t require creative, sapient thought to perform should be done by robots. Can we move to such a society overnight? No. Even if we magically received all the infrastructure and pre-built robots needed to do so, such that in the morning we could literally just turn on the factory and have the robots replace all human jobs? Still no. Because there’s more at work here than just physical possibility. We as a society aren’t ready for such a transition. There are too many people, forgive me, that are too stupid to live in that world. Too many jobs rely on people to do menial, mindless tasks. You can’t just have someone doing that move to something that requires creativity without getting them acclimated first.

 

Having said that, the stopgap of 300,000 pointless jobs where robots could be replacing at least some of that immediately is not a better option than having those robots do the replacing where possible right now.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #19 of 40
Quote:
Originally Posted by Tallest Skil View Post

I disagree. Any job that doesn’t require creative, sapient thought to perform should be done by robots. Can we move to such a society overnight? No. Even if we magically received all the infrastructure and pre-built robots needed to do so, such that in the morning we could literally just turn on the factory and have the robots replace all human jobs? Still no. Because there’s more at work here than just physical possibility. We as a society aren’t ready for such a transition. There are too many people, forgive me, that are too stupid to live in that world. Too many jobs rely on people to do menial, mindless tasks. You can’t just have someone doing that move to something that requires creativity without getting them acclimated first.

Having said that, the stopgap of 300,000 pointless jobs where robots could be replacing at least some of that immediately is not a better option than having those robots do the replacing where possible right now.

Correct. And something people do not yet appreciate...the age of general purpose robots and "strong AI" will soon be here. Ray Kurzweil posits that from 2019 and going forward artificial intelligence will match, then exceed the processing power of a human brain. This will mark a transition to a world that will take millions, if not billions of people by surprise. The initial uses will be rather benign, but eventually extremely high levels of expertise will be available for little to no cost through IBM, Apple and Google services (for example).

Proud AAPL stock owner.

 

GOA

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GOA

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post #20 of 40
Wow! 300k people working on iPhone... 600 people per assembly pipeline...
iPhone 5S must be in Guinness Book as a most hand-made product in the world.
Seriously though, why is it not automated?
post #21 of 40
Originally Posted by SpamSandwich View Post
Correct. And something people do not yet appreciate...the age of general purpose robots and "strong AI" will soon be here. Ray Kurzweil posits that from 2019 and going forward artificial intelligence will match, then exceed the processing power of a human brain. This will mark a transition to a world that will take millions, if not billions of people by surprise. The initial uses will be rather benign, but eventually extremely high levels of expertise will be available for little to no cost through IBM, Apple and Google services (for example).

 

And there are plenty of things that can be automated fully using modern day technology. 

 

For example, a fast food restaurant could have its entire building operation completely automated today. Take McDonald’s. Inside you’d have three iPads where the counter is now. People pick what they want (HOLY CRAP NO MORE MESSED UP ORDERS), confirm, feed in the money (just like the self checkouts at grocery stores), and wait. All the machinery required to build the food, bag it, and send it out is already in existence. It feeds down, boom, meal. Done. The only thing you need a human for, right now, is to drive the truck that has all the materials in it and unload said materials into the building. And even that’s being replaced (Google self-driving vehicles).

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply
post #22 of 40
Quote:
Originally Posted by Tallest Skil View Post

Quote:
Uh we'd be better off having the 300,000 jobs for people rather than robots.

I disagree. Any job that doesn’t require creative, sapient thought to perform should be done by robots. Can we move to such a society overnight? No. Even if we magically received all the infrastructure and pre-built robots needed to do so, such that in the morning we could literally just turn on the factory and have the robots replace all human jobs? Still no. Because there’s more at work here than just physical possibility. We as a society aren’t ready for such a transition. There are too many people, forgive me, that are too stupid to live in that world. Too many jobs rely on people to do menial, mindless tasks. You can’t just have someone doing that move to something that requires creativity without getting them acclimated first.

Having said that, the stopgap of 300,000 pointless jobs where robots could be replacing at least some of that immediately is not a better option than having those robots do the replacing where possible right now.

You had me until ...stupid....
Rampant egotism much?
Why must we all be cut from the same cloth?
Why is it we allow misinformed nonsense to cloud our opinion?
post #23 of 40
Originally Posted by Frac View Post
You had me until stupid...Rampant egotism much?


Are you claiming some people aren’t as intelligent as others?

 
Why must we all be cut from the same cloth?

 

And then there you go completely contradicting yourself. All people are equal. Period. All people have equal capability for equal intelligence. Period. Not all people are equally intelligent. Many factors contribute to this, but pretending it isn’t the case, for whatever reason, is blinding yourself.

 
Why is it we allow misinformed nonsense to cloud our opinion?

 

Might want to clear up your own.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #24 of 40
Quote:
Originally Posted by Tallest Skil View Post
 

 All people have equal capability for equal intelligence. Period.

Yea thats not true.  But it doesn't really take away from your point, either, which illustrates how the north american job market has been heading for a while now.

 

One problem with robotics might be changing them every time a new phone comes out.  May be too expensive.  Of course I don't know much about it, just venturing a guess.  I can't believe Foxconn wouldn't use more pervasive robotic technique if it were more profitable.

post #25 of 40
Originally Posted by joelsalt View Post
Yea thats not true.

 

Wow, how about some proof, then? You’re saying there are people who can’t become as smart as others? Utter freaking nonsense.

 

One problem with robotics might be changing them every time a new phone comes out.

 

The only major changes I can see are swapping out part holder appendages and reprogramming the path of the arm, you know? A new part won’t go to the same place as the old part, and a new part might not be able to be grasped like an old one. Have 50 people take a day to swap out heads, but other than that…

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #26 of 40
If Foxconn has dedicated 100 assembly lines to the iPhone and it requires 600 employees per line, how come the article states that 300,000 workers are assembling iPhones? Where's the journalism? Where's the editing? Where are the missing 300,000 employees?
post #27 of 40
Quote:
Originally Posted by Tallest Skil View Post

Any job that doesn’t require creative, sapient thought to perform should be done by robots.

So... Samsung can design its phones and tablets with robots!

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #28 of 40
Originally Posted by Suddenly Newton View Post
So... Samsung can design its phones and tablets with robots!

 

Hey, they could do that now. Have the robot arm pick up an iPhone, hold it for another robot to run a laser scanner over it, and then have a supercomputer figure out how to replace the Apple logo with a shiny Samsung logo.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #29 of 40
Quote:
Originally Posted by msimpson View Post

Mr. McGuire: I just want to say one word to you. Just one word.
Benjamin: Yes, sir.
Mr. McGuire: Are you listening?
Benjamin: Yes, I am.
Mr. McGuire: ROBOTS.

You means iRobots sir?
post #30 of 40
Quote:
Originally Posted by optimyst View Post

If Foxconn has dedicated 100 assembly lines to the iPhone and it requires 600 employees per line, how come the article states that 300,000 workers are assembling iPhones? Where's the journalism? Where's the editing? Where are the missing 300,000 employees?

Hey, you're just the person to check out my laborious calculations in post #12. What do you think?
post #31 of 40
It takes a village to make an iPhone...
post #32 of 40
Quote:
Originally Posted by Flaneur View Post


Hey, you're just the person to check out my laborious calculations in post #12. What do you think?

 

Haha!

 

"No one reads anymore."

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GOA

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Proud AAPL stock owner.

 

GOA

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post #33 of 40
Quote:
Originally Posted by OcelotWreak View Post

It takes a village to make an iPhone...

 

Yes. A village of robots.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #34 of 40
Quote:
Originally Posted by Tallest Skil View Post

 

Wow, how about some proof, then? You’re saying there are people who can’t become as smart as others? Utter freaking nonsense.

 

 



You crack me up sometimes, at least you could do is put a wink-smiley on your statement.
Hokey religions and ancient weapons are no match for a good blaster by your side, kid.
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post #35 of 40
Quote:
Originally Posted by Tallest Skil View Post

Quote:
You had me until 
stupid...

Rampant egotism much?


Are you claiming some people aren’t as intelligent as others?
Quote:
Why must we all be cut from the same cloth?
And then there you go completely contradicting yourself. All people are equal. Period. All people have equal capability for equal intelligence. Period. Not all people are equally intelligent. Many factors contribute to this, but pretending it isn’t the case, for whatever reason, is blinding yourself.
Quote:
Why is it we allow misinformed nonsense to cloud our opinion?

Might want to clear up your own.

Now you're making stuff up.
Silly me, thinking such pejorative generalisations had gone from intelligent discourse.
post #36 of 40
Originally Posted by boeyc15 View Post

You crack me up sometimes, at least you could do is put a wink-smiley on your statement.

 

So absolutely no proof for your claim whatsoever. Thanks for wasting our time.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #37 of 40
nm
post #38 of 40
Quote:
Originally Posted by digitalclips View Post

You got that right ... Robots running 3D LiquidMetal Printers maybe .... But I am hopeful these will be Robots that live and work right here in America. 1biggrin.gif

When we're all unemployed by robots, hopefully they will also buy Apple products, since humans will no longer be able to earn money.

I was going to ask "where are the robot investment bankers" but I believe that's an oxymoron....
Edited by vaporland - 11/27/13 at 9:25pm
post #39 of 40
Quote:
Originally Posted by Homey Skool View Post

All people have equal capability for equal intelligence. Period. Not all people are equally intelligent.

Fetal alcohol syndrome. You obviously never saw "Idiocracy" *

Or went to school with rednecks. Or shopped with "People Of Wal-Mart".

The America beyond grad school / mom's basement is vast and dumbed down.

* "Robots! It's what (assembly) plants crave!"
Edited by vaporland - 11/27/13 at 9:28pm
post #40 of 40
Quote:
Originally Posted by OcelotWreak View Post

It takes a village to make an iPhone...

Village...People?

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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