Once upon a time, Apple's major mobile phone OEM production lines were crowded, and working in electronics factories has become the first choice for many workers, but it is possible that there are not so many people in the foundry that absorbs a large number of labor.
1. Apple wants to replace half of the labor with machines?
According to the 21st Century Business Herald, according to the "Science and Technology Innovation Board Daily", citing foreign media reports, Apple has asked the foundry to reduce the ordinary manpower demand of the iPhone assembly line in the next few years, and the ordinary manpower demand of some production lines can be reduced by about 50% compared with the past, which is regarded as part of the goal of improving automated production.
It's worth noting that the cost of automated iPhone assembly equipment can be hundreds of millions of dollars per year, and Apple requires foundries to bear most of the equipment investments, which were previously shelved due to cost issues.
According to the China Business Daily, citing the above-mentioned foreign media reports, Foxconn's shutdown turmoil made Apple determined to implement the automation project, and Apple's iPhone 15 series achieved "a lot" of automation, but due to the complexity of production, automation still brought challenges to Apple. According to the report, the "high defect rate" is the biggest problem in the current iPhone assembly automation project, causing Apple to cancel some of the automation processes of the iPhone 16 series. Three people working in Apple's supply chain revealed that this year Apple continues to focus on and promote automation technology, using robots to install iPhone buttons, receivers, speakers and main logic boards into the phone.
However, many industry insiders said that they did not agree that it was Foxconn's shutdown that made Apple plunge headlong into the process of iPhone production automation, and Apple has been implementing automated production.
In this regard, the reporter of Nancai Express called the three foundries of Industrial Fortune Union, Lixun Precision and Goertek as investors, and none of the above companies disclosed information related to iPhone automation. However, the relevant personnel of Lixun Precision said that automated production is its strength, and it is also building some automated production lines to help customers improve the automation rate of the entire production line.
According to the Science and Technology Innovation Board Daily, in fact, the iPhone 15 assembly process already has these automated devices. According to people related to Apple's supply chain, automation has caused Apple's foundry to reduce the manpower needs of thousands of ordinary people in China, and the ordinary manpower of some production lines has been reduced by nearly 0%. According to Apple's annual supply chain report, the total number of full-time employees at its manufacturing partners fell from 1.6 million in 2022 to 1.4 million in 2023.
According to the information disclosed by Foxconn, the workshops of the Industrial Fortune Union Jiyuan Park have achieved a high degree of automation and intelligence. Among them, in the A03 and A05 workshops, nearly 500 pieces of equipment are operating normally, but only more than 40 production technicians shuttle between the machines to inspect and maintain. The relevant person in charge said that the popularization of intelligence and automation has reduced the demand for ordinary manpower and reduced the per capita labor intensity, but at the same time, it also puts forward higher requirements for the skill level of production technicians.
Second, is the era of big foundry coming to an end?
Today, with the rapid development of science and technology, Apple announced that it will replace half of the manual production links with machines, this decision not only reflects the impact of technological progress on traditional production methods, but also seems to indicate the end of the era of large foundry, what should we think about this matter? Is a vigorous wave of large foundry coming to an end?
First of all, it's no surprise that Apple wants to replace human labor with machines. Apple's trend of replacing human labor with machines is actually not an isolated case, but a continuation and deepening of technological development since the Industrial Revolution.
From a historical perspective, the Industrial Revolution was an important turning point in human history. It marks the transition from manual production to mechanized mass production, and the core driving force of this transformation is the replacement of manual labor by machines. In the early days of the Industrial Revolution, the invention and application of textile machines, steam engines and other machines greatly improved production efficiency, reduced production costs, and enabled goods to enter the market faster and cheaper, meeting people's growing needs.
In the industrial revolution, mechanized large-scale production replaced small-scale artificial production, which was not only a change in the mode of production, but also a profound adjustment of the social and economic structure. Mechanized large-scale production promotes the refinement and specialization of the division of labor, so that people can focus on work in a specific field, thereby improving the production efficiency and innovation ability of the whole society. At the same time, mechanized large-scale production has also promoted the process of urbanization, attracting a large number of rural people to the city, and promoting the development and prosperity of the urban economy.
Going back to Apple's decision to replace human labor with machines, this is actually the embodiment of technological progress in modern enterprises. With the rapid development of artificial intelligence, robotics and other fields, machines have become capable of doing more and more tasks that would otherwise be done by humans. In the manufacturing field, automated production lines have been widely used, which not only improves production efficiency, but also reduces labor costs and error rates. In the service industry, such as catering and retail, artificial intelligence and robots are also beginning to play an increasingly important role in providing people with more convenient and efficient services. Since machines are enough for daily production, it is only natural to replace traditional manual production, and for Apple, this shift is also a reflection of the modernization of production methods and the optimization of efficiency.
Second, why didn't Apple use automated production at the beginning of production? Apple's products are mainly high-precision electronic products, which require extremely high precision in the manufacturing process. High-precision assembly processes are the key to ensuring stable performance and long life of electronic products. In the early days of Apple manufacturing, although mechanized production has been widely used in many fields, the mechanical technology at that time has not yet developed to the extent that it can fully meet the requirements of the assembly accuracy of Apple products. Therefore, the use of pure machinery for production may affect the overall performance and quality of the product due to substandard accuracy.
At the same time, labor costs are also an important consideration. In the early days of apple manufacturing, labor costs were relatively low, especially in some developing countries. In this case, the use of labor for product assembly not only meets the high precision requirements, but also has lower labor costs compared to expensive machinery and equipment. In economics, the production function describes the relationship between the number of various factors of production used in production and the maximum output that can be produced in a certain period of time with the same level of technology. When labor costs are low enough, enterprises often choose to increase labor input instead of technology investment to achieve the purpose of cost savings.
This choice is not without a price. Although labor costs are relatively low, there are certain risks associated with using human labor for the assembly of high-precision electronic products. For example, human factors may lead to fluctuations in product quality and increase the rate of product defects; At the same time, with the gradual rise of labor costs, the economy of this production method will gradually decrease. Today, Apple is facing this problem.
Third, why is now a good time to make substitutions? With the vigorous development of the global economy, the level of economic development of various countries has generally improved, which has not only brought about a significant improvement in people's quality of life, but also profoundly affected the pattern of the labor market. One notable change in this process is the continued rise in labor costs. On the one hand, this increase is due to the relative reduction of labor supply, and on the other hand, due to the improvement of education level and skill requirements, the value of labor force has been more fully reflected, which is particularly obvious in China today.
When labor costs rise to a certain level, companies have to seek ways to save costs in order to remain competitive, so that the technology substitutions we mentioned above begin to emerge.
From a cost perspective, while the initial investment costs for machines and automation technology may be high, they are fixed and predictable. Once a piece of equipment is in operation, its operating costs are typically much lower than labor costs, especially considering ongoing expenditures such as wages, benefits, training, etc., for the workforce. As a result, technology substitution can lead to significant cost savings for businesses in the long run.
At the same time, technology substitution can greatly improve labor productivity. The machine and automation technology has the characteristics of high precision, high efficiency and high stability, and can complete a large number of repetitive tasks in a short time, and is not limited by factors such as working time and working environment. This not only speeds up production, but also reduces production errors and waste due to human factors, thereby improving overall production efficiency.
Fourth, in the face of the torrent of the times, what should you do as an ordinary worker? From a historical point of view, replacing labor with machines is an inevitable trend in the development of productive forces. Labor-intensive industries have historically played an important role, but with the development of technological progress and productivity, these industries have gradually exposed problems such as inefficiency and high cost. Therefore, the decline of labor-intensive industries is the result of the interaction between productive forces and production relations.
For each of us ordinary workers, the replacement of machines and AI has indeed brought unprecedented challenges. However, this does not mean that we will be left behind by the times. On the contrary, it is an opportunity for everyone to keep learning and improving themselves. In today's world where machines and AI are becoming more ubiquitous, workers need to constantly acquire new knowledge and skills to adapt to changing market demands. Only in this way can we be invincible in the fierce market competition and realize our own value and development.
Of course, let's not forget that although the emergence of automobiles has made coachmen obsolete by the times, cars also need a large number of drivers, and the replacement of machines and AI also provides more opportunities for workers to develop. With the continuous improvement of intelligence, many new occupations and positions have emerged. These new occupations and positions require workers to have higher overall quality and innovation ability. Therefore, instead of worrying about being eliminated by the times, it is better to think about how to learn and progress and truly adapt to the development of the times.
The wheels of history are rolling forward, and for each of us, since we are powerless to change, it is better to learn how to adapt to this rapidly changing era.