WASHINGTON: In a new report from ‘The Information’, Apple Inc. is intensifying efforts to automate a significant portion of its iPhone production, aiming to slash the number of workers on final assembly lines by as much as 50% in the coming years.
This ambitious initiative, spearheaded by Sabih Khan, Apple’s senior vice president of operations, follows recent turmoil at Foxconn’s primary assembly plant in 2022.
The tech giant is reviving long-shelved automation projects, previously deemed costly, to streamline its supply chain and bolster production efficiency. Despite the substantial upfront investments required — sometimes reaching hundreds of millions annually per machinery — Apple has been pressing its manufacturing partners to embrace automation, albeit with varying success.
Recent data from Apple’s supply chain reports reveal a noticeable decline in the number of employees monitored for work-hour compliance, dropping from 1.6 million in 2022 to 1.4 million by 2023. This reduction underscores the company’s pivot towards automated solutions.
Peter Thompson, an operations vice president at Apple, has been at the forefront of these efforts, overseeing the successful automation of critical assembly processes for the iPhone 15. Collaborating closely with key partners like Foxconn, Luxshare Precision, and Pegatron, Thompson’s team has developed machines capable of installing intricate components such as metal brackets and printed circuit boards without human intervention.
These advancements have already led to significant workforce reductions in China, with some processes seeing headcount reductions of up to 30%, according to insiders familiar with Apple’s supply chain operations.
In addition to internal efforts, Apple has bolstered its automation capabilities through strategic acquisitions, including DarwinAI and Drishti. Drishti, acquired last year, specializes in real-time analysis of assembly line footage to pinpoint production bottlenecks and enhance efficiency.
While Apple faced setbacks, such as abandoning plans to automate the installation of iPhone buttons due to quality issues, the company remains steadfast in its goal to drastically cut labor reliance on final assembly lines, with aspirations to achieve a 50% reduction in workforce involvement.
This move signals Apple’s commitment to leveraging cutting-edge technology to streamline operations and maintain its competitive edge in the fiercely contested global smartphone market.
