Apple is significantly accelerating the rollout of automation and robotics across its manufacturing supply chain, DigiTimes reports.
While Apple has advocated for increased automation in supplier facilities for over two years, sources familiar with the matter say that Apple now requires automation as a standard prerequisite for awarding manufacturing contracts. This is said to be part of a broader effort to minimize labor dependency, stabilize product quality and uniformity across different facilities, and reduce long-term production costs amid ongoing supply chain diversification away from China.
Apple's alleged automation mandate spans all major product categories, including the iPhone, iPad, Mac, and Apple Watch. Apple now purportedly expects suppliers to fund their own automation upgrades rather than rely on Apple to finance or subsidize the necessary capital equipment. This policy change diverges from Apple's previous approach, where the company frequently invested in tooling and machinery for contract manufacturers to meet its specifications.
The financial burden of this new automation requirement is apparently already impacting supplier margins. High initial capital expenditure, coupled with operational disruptions during integration of robotic systems, has reportedly strained profitability for some suppliers.
Apple still continues to assist suppliers in areas related to environmental responsibility. The company's 2030 target to achieve carbon neutrality across its entire supply chain includes direct support for upgrading to energy-efficient equipment and more sustainable materials.
Apple ostensibly hopes that increased use of robotics will help standardize processes, digitize inspections, reduce the impact of labor shortages and political instability, implement consistent processes for new suppliers, and mitigate the challenges of maintaining consistent build quality when production is increasingly split across multiple countries.
