Apple demands automation upgrades from suppliers to continue partnerships
Apple is shaking up its supply chain—suppliers must invest in robotics and automation if they want to keep building iPhones, iPads, Macs, and Watches.
Unlike before, Apple won't cover the cost of new machines; suppliers have to pay for these upgrades themselves.
Big costs for suppliers
The goal? Fewer people on the assembly line, more reliable quality, and lower production costs.
Apple also wants to spread its manufacturing beyond China.
But for suppliers, this means big upfront expenses and a push to upgrade their manufacturing hardware.
Apple's green push
To soften the blow, Apple's helping suppliers switch to energy-efficient equipment that fits its 2030 carbon-neutral goals.
While it's still a heavy lift for many partners, these changes could make factories more eco-friendly in the long run.
The bigger picture
By speeding up automation, Apple hopes to dodge labor shortages and global disruptions while keeping product quality high everywhere.
Plus, it should make onboarding new suppliers faster as production scales worldwide.