Original Title: [Exclusive] Foxconn produces 590 new iPhones per hour on each line, with capacity prioritizing the iPhone XR
Although the iPhone product highlights are not good enough, Foxconn's employees are still busy.
In September, the Foxconn Park in Zhengzhou ushered in the busiest days. With Apple releasing three new iPhone models, the company's largest assembly plant switched quickly to a lighted state.
Foxconn Corp. (a Taiwanese business entity known as Hon Hai Seiko) posted August operating data, earning $396.8 billion, or $12.9 billion, in August, up 0.3% from July, according to Taiwan's e-Times website. Compared with the same period last year, it increased by 25.3%.
Foxconn is the world's largest electronic OEM company, and Apple is only one of its large number of OEM customers. Data show that among Foxconn's three major businesses, consumer electronics performed best in August, followed by communications and computing.
Currently, there are three new iPhone core assembly plants for Apple: Foxconn, Heshuo and Viagra. But Foxconn occupies more than half of the production share. Foxconn's revenue growth is expected to expand in the remaining months of 2018, as Apple's new mobile phones go on sale on a large scale.
Foxconn capacity prioritization iPhone XR
In September 12th, Apple released iPhone Xs, iPhone Xs Max and iPhone XR three new phones at one go. In the eyes of many, the announcement will be almost spotless, and if there's just one bright spot to look for, it's the price of Apple's mobile phone reaching a new high.
According to market research firm Anaccord Genuity, Apple grabbed 87% of the global smartphone industry's profits in the fourth quarter of 2017, while Apple's iPhone sales accounted for only 17.9% of total sales.
The highlight of this year's apple conference is that in addition to ultimate mobile, Apple has launched a new product.
The iPhone XR, which starts at $749 (from $6,499 in the Bank of China version), is more cost-effective than the 8 Plus, and is expected to be delayed until the end of October.
According to an employee on the iPhone XR line, Foxconn's Zhengzhou campus currently has 27 lines for the iPhone XR, the largest of the three models, with a yield of 93% and a production efficiency of 590 mobile phones per hour per line for 19 hours per day.
Last year, Foxconn encountered many difficulties in making Apple's iPhone X handset, including the low quality rate of upstream component suppliers, which delayed the time for mass distribution of the iPhone X handset, and also affected Foxconn's performance. In October, when Apple's mobile phone sales were at their peak, Foxconn suffered. The group's revenue grew by only 3%.
The head of Foxconn's production line says that once the initial order is determined, their distribution can be switched quickly. Because the manufacturing process of these devices is the same, the test software is ready-made, they just need to replace the assembly equipment.
Each production line is equipped with 1200 workers.
Foxconn wanted to use
He adds that assembly testing can be used for automation, including face recognition modules, which are also done by machines. But in terms of screw, inspection and cleaning, they still rely highly on manual labor. At present, automation equipment can only complete the 30-40% of the whole assembly process, and it is hard to exceed 50%.
But according to the latest iPhone, technology and complexity make it difficult to get out of the hands of workers, but at the same time, the rising cost of labor is a headache for Foxconn.