Recently, the media reported that Taiwan's electronic parts suppliers received a 30% drop in their iPhone 7 orders this year, and they were also required to reduce their order prices by about 20%. Some Taiwanese suppliers believe that if they meet Apple's above requirements, they will not be able to obtain sufficient profits. Some suppliers (including Sun Moonlight Semiconductor and several of Foxconn's associated companies) have made it clear that it is not possible to accept Apple orders without a reasonable profit. Foxconn is not afraid of Apple's "crushing" to develop industrial robots is a recipe for Apple's suppliers to survive difficult industrial robots Compared with Apple's consumer electronics market scene, Apple's suppliers have always been very difficult situation, mainly in two aspects: 
Apple's "exploitation." To increase bargaining power, Apple has identified nearly a thousand suppliers worldwide. This allows suppliers to only get Apple orders at a low price and in a large amount - earning "hard money." What's more, Apple will also reduce the amount of orders and requests for quotations, which means that the supplier's profit margin is further compressed. Manpower costs pressure. While Apple's OEM pay continues to decline, labor costs are soaring. In the past, suppliers were able to make money by taking measures. When the labor costs rise rapidly, the prospects of this profit model are worrying. Above, the industry believes that there are two paths for suppliers to solve their own survival difficulties: First, to get rid of Apple's dependence - In the context of Apple's mobile phone is still the world's best-selling consumer electronics products, suppliers are difficult to have the determination of "strong soldiers broken wrist", so There are few people on this path. The second is to reduce operating costs. Considering that Apple's offer is declining year by year and labor costs are rising, suppliers need to find new ways to reduce operating costs. Industrial robots are one of the directions. Machine substitution strategies accelerate the rapid growth of the industrial robot market_21c788d37a_z ▲ Industrial robots (Source: Flickr/Steve Jurvetson CC BY 2.0) Compared with traditional manpower, the biggest advantages of industrial robots are efficiency and low cost. Here, taking cost as an example, if a factory requires three mature welding workers, the factory will need to spend 216 thousand yuan each year, and industrial robots will be depreciated with 10 years of service life (including maintenance costs). The annual cost is about 50,000 yuan. Therefore, it can be concluded that with the same benefits, the cost of industrial robots is about 23% of the human cost. Not only that, considering that the human cost will increase year by year, and the cost of industrial robots will hardly change, and the advantages of industrial robots will be further expanded compared with ordinary laborers. Therefore, under the background that Apple’s bargaining power is inviolable, suppliers represented by Foxconn have begun to exert their efforts in the field of industrial robots.
According to media reports, Foxconn invested RMB 4 billion in artificial intelligence in 2015. Industrial robots were also introduced at the Foxconn factory in Kunshan, Jiangsu Province. The number of employees replaced is expected to be as much as 60,000 – because of the introduction of industrial robots. The number of Foxconn employees in Kunshan fell from 110,000 to 50,000. At the same time, many Kunshan electronics manufacturing companies also want to introduce industrial robots (more than 600 companies report this idea). This reflects the fact that the cost of labor has skyrocketed and the profits of foundry companies have declined. The strong determination of the factory to transform industrial robots. Driven by this kind of power, the “machine-for-agent†strategy of Chinese factories will accelerate, and the market demand for industrial robots will increase further. TrendForce's research brand, Tuoba Industrial Research Institute (TRI), predicts that in 2016, the demand for industrial robots in China will reach 95,000 units. In 2015, the sales volume of industrial robots in China was approximately 68,000 units, an increase of approximately 18% over the same period of last year. Calculated from the demand of 95,000 units, the sales volume of industrial robots in 2016 increased by approximately 39% year-on-year. This market is experiencing rapid development.
Apple's "exploitation." To increase bargaining power, Apple has identified nearly a thousand suppliers worldwide. This allows suppliers to only get Apple orders at a low price and in a large amount - earning "hard money." What's more, Apple will also reduce the amount of orders and requests for quotations, which means that the supplier's profit margin is further compressed. Manpower costs pressure. While Apple's OEM pay continues to decline, labor costs are soaring. In the past, suppliers were able to make money by taking measures. When the labor costs rise rapidly, the prospects of this profit model are worrying. Above, the industry believes that there are two paths for suppliers to solve their own survival difficulties: First, to get rid of Apple's dependence - In the context of Apple's mobile phone is still the world's best-selling consumer electronics products, suppliers are difficult to have the determination of "strong soldiers broken wrist", so There are few people on this path. The second is to reduce operating costs. Considering that Apple's offer is declining year by year and labor costs are rising, suppliers need to find new ways to reduce operating costs. Industrial robots are one of the directions. Machine substitution strategies accelerate the rapid growth of the industrial robot market_21c788d37a_z ▲ Industrial robots (Source: Flickr/Steve Jurvetson CC BY 2.0) Compared with traditional manpower, the biggest advantages of industrial robots are efficiency and low cost. Here, taking cost as an example, if a factory requires three mature welding workers, the factory will need to spend 216 thousand yuan each year, and industrial robots will be depreciated with 10 years of service life (including maintenance costs). The annual cost is about 50,000 yuan. Therefore, it can be concluded that with the same benefits, the cost of industrial robots is about 23% of the human cost. Not only that, considering that the human cost will increase year by year, and the cost of industrial robots will hardly change, and the advantages of industrial robots will be further expanded compared with ordinary laborers. Therefore, under the background that Apple’s bargaining power is inviolable, suppliers represented by Foxconn have begun to exert their efforts in the field of industrial robots.
According to media reports, Foxconn invested RMB 4 billion in artificial intelligence in 2015. Industrial robots were also introduced at the Foxconn factory in Kunshan, Jiangsu Province. The number of employees replaced is expected to be as much as 60,000 – because of the introduction of industrial robots. The number of Foxconn employees in Kunshan fell from 110,000 to 50,000. At the same time, many Kunshan electronics manufacturing companies also want to introduce industrial robots (more than 600 companies report this idea). This reflects the fact that the cost of labor has skyrocketed and the profits of foundry companies have declined. The strong determination of the factory to transform industrial robots. Driven by this kind of power, the “machine-for-agent†strategy of Chinese factories will accelerate, and the market demand for industrial robots will increase further. TrendForce's research brand, Tuoba Industrial Research Institute (TRI), predicts that in 2016, the demand for industrial robots in China will reach 95,000 units. In 2015, the sales volume of industrial robots in China was approximately 68,000 units, an increase of approximately 18% over the same period of last year. Calculated from the demand of 95,000 units, the sales volume of industrial robots in 2016 increased by approximately 39% year-on-year. This market is experiencing rapid development.
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