Apple plans to use automation to replace 50% of the labourers on the iPhone final manufacturing line

A new report published today by The Information details Apple's efforts to increase automation in its iPhone production process. The report explains that Apple has asked executives to "reduce the number of workers on the iPhone's final assembly line by as much as 50% over the next few years." According to reports, the order was issued by Sabih Khan, Apple's senior vice president of operations. The decision reportedly comes shortly after violent clashes between iPhone workers and police outside Foxconn's main assembly plant in November 2022.

According to The Information, to reduce overall headcount, Apple is moving forward with supply chain and manufacturing automation projects that "were previously delayed due to high upfront costs."

The equipment needed to automate iPhone production sometimes costs hundreds of millions of dollars a year. In some cases, Apple exerts pressure on production partners and demanded that it invest in previous investments and has gained different degree of success.

According to the Apple Annual Supply Chain Report, the total number of employees with working hours in its production partners has decreased from 1.6 million to 2022 to 1.4 million to 2023. The report states that there is "significant automation" in the final assembly process of the iPhone 15.

The information also points to two acquisitions that have helped Apple's supply chain automation efforts, including DarwinAI. Apple also reportedly bought a company called Drishti last year that analyzes video footage of assembly lines to "instantly identify bottlenecks and production issues." For this year's iPhone 16, Apple initially planned to automate the installation process for iPhone buttons and other components. However, the plans were canceled "due to high defect rates."

Still, despite stumbling blocks along the way, Apple's ultimate goal is to reduce the number of workers on its final iPhone assembly line by up to 50 percent.