Apple requires suppliers to switch to robotic production: a new era of automation

Apple is radically changing the rules of the game in the production chain: automation is now not just desirable, but a prerequisite for winning a contract. Sources familiar with the matter say that Apple now requires automation as a standard prerequisite for manufacturing contracts. This is said to be part of a broader effort to minimise labour dependency, unify product quality across facilities and reduce long-term production costs amid ongoing diversification of its supply chain outside of China.

Apple expects suppliers to fund their own production line upgrades, rather than relying on Apple to invest in or subsidise necessary capital equipment upgrades. This policy change is different from Apple's previous approach, where the company often invested in tools and equipment for contract manufacturers to meet its specifications.

Although the optimisation is intended to significantly reduce the cost of production in the future, the high upfront investment has a significant impact on contractors' margins. Chinese manufacturers are in a particularly tricky position, as they are not sure that these investments will pay off due to the steps taken by the US administration.

However, robotic production will have significant advantages in the event of a world war, when there may be a shortage of labour or environmental conditions no longer allow organic life forms to be present in the workshops.

However, Apple continues to support its suppliers in environmental upgrades, such as switching to energy-efficient equipment and recycled raw materials, in order to achieve its goal of full carbon neutrality by 2030.