Apple makes automation a key requirement for manufacturing partners
What's the story
Apple is pushing its suppliers to adopt automation and robotics in their manufacturing processes, DigiTimes reported. The tech giant has been advocating for more automation in supplier facilities for over two years. Now, Apple is making automation a key condition for awarding manufacturing contracts. The move seeks to reduce reliance on human labor, ensure consistent product quality across facilities, and lower long-term production costs as part of its efforts to diversify manufacturing beyond China.
Product impact
Suppliers to bear costs of automation upgrades
The automation push from Apple covers all its major product lines, including iPhone, iPad, Mac, and Apple Watch. Suppliers are expected to fund their own automation upgrades instead of relying on Apple for financing or equipment. This is a shift from the company's previous practice of investing in tooling and machinery for contract manufacturers. The new requirement is said to be straining supplier margins due to high upfront capital expenditure and operational disruption during robotic system integration.
Sustainability efforts
Apple's commitment to sustainability amid supplier challenges
Despite the pressure on supplier margins, Apple continues to support environmental initiatives. As part of its 2030 goal to achieve carbon neutrality across the supply chain, the company is helping suppliers transition to energy-efficient equipment and sustainable materials. This move is in line with Apple's broader strategy of promoting sustainability and reducing its carbon footprint in manufacturing processes.