Foxconn, one of the manufacturers for the Apple iPhone 6, are facing revenue decline due to the increasing wages in China. According to a report , the company insiders said that they are going to shrink the work force and planning to replace them with automated machines.
When Apple needs a massive supply of iPhones for a new launch, the Taiwanese electronics manufacturer generally employs more than 1.3 million workers as it is peak time. Since 2010, the labor costs got more than double which made Foxconn to cut down the staff.
"Technology is becoming cheaper every year. The devices that Foxconn ships are becoming cheaper and cheaper every year but the employees demanding bigger wages for their work. For an instance the average smartphone will sell for 19% less in 2018," said Louis Woo, special assistant to the Chairman of Foxconn.
He also added, "We've basically stabilized (our workforce) in the last three years and Foxconn will lay off staff or hire less people in the future. Robots would replace the present work force which will reduce the labor costs."
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Everyone knows Apple is meant for caring deeply on how their iPhones are assembled and shipped. They might not accept to make the assembling process on automation as they are very accurate in terms of manufacturing their iDevices which will definitely needs a human work.
Which part of work will be handled by robots and how many employees will Foxconn hire for the remaining work is yet to be known.