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

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.

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.



39 Comments

msimpson 452 comments · 17 Years

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.

solipsismx 19562 comments · 13 Years

With 300k people and 500k units that's less than 2 iPhones per day per person. Let's speed it up [S]slaves[/S] 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.

SpamSandwich 32917 comments · 19 Years

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

jungmark 6927 comments · 13 Years

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.

tbell 3145 comments · 17 Years

Quote:
Originally Posted by sog35 
 

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.