"When Apple's iPhone4 was nearing production, Foxconn and Apple discovered that the metal frame was so specialized that it could be made only by an expensive, low-volume machine usually reserved for prototypes. Apple's designers wouldn't budge on their specs, so Gou ordered more than 1,000 of the $20,000 machines from Tokyo-based Fanuc. Most companies have just one."
So?
I knew this was coming when I didn't elaborate on my response, but I don't really see what the parent was trying to get at. Apple uses Foxconn/Hon Hai because they are the biggest and the best at mass manufacturing consumer electronics. Foxconn is the only EMS company with the scale to depress supply chain costs to a point where they can actually make money on tiny margin products (like cell phones, mp3 players, and even PCs[1]). I am 100% sure the tooling debate arose during the planning phase, and I'm also 100% sure that it's in both Foxconn's and Apple's best interest for Apple not to have to go elsewhere. At the end of the day, a machinery investment like this isn't just going to support the iPhone contract (though it will be used by Foxconn in future negotiations, I'm sure), but other similar business they win. Here's another tidbit: Foxconn doesn't use Fuji pick & place machines. Anecdotally I've heard it's because Fuji is a Japanese company, and since there's a viable non-Japanese alternative -- Siemens[2] -- there's no need to use Fuji. However, what Foxconn did was negotiate an exclusive contract with Siemens so that they'd have the exclusive manufacturing contract for Siemens Siplace line and in return they'd commit to only using the Siemens equipment themselves. At their scale -- thousands of SMT lines, with each machine costing in the $250k range, this saves many millions each year.
I work in this industry and am happy to answer any questions about electronics manufacturing.
[1] Taiwanese companies like Quanta and Compal are excelling at laptop design and manufacturing, and in some cases Acer and Asus still build their own products, but almost all of it is outsourced to Quanta & Compal. [2] http://ea.automation.siemens.com/11116/Products/Placement-Sy...