Apple Reportedly Pushes Supply Chain Partners to Ramp Up Automation Upgrades

Apple is urging its supply chain partners to invest in automation for the production of various products, according to a report. While the Cupertino-based tech giant has previously advocated for robotics and automated systems in manufacturing, it is now reportedly taking a more aggressive approach to implementation. The latest move comes months after the company is attempting to diversify its supply chain outside China, following tariffs announced by US President Donald Trump. The shift is part of a broader strategy to reduce reliance on manual labour and boost production efficiency.

Apple Steps Up Automation Push Across Its Supply Chain

Citing industry insiders, DigiTimes reports that Apple is ramping up automation across its manufacturing supply chain. Apple has been pushing for automation over the past couple of years, and the company is expected to accelerate these efforts "starting in 2025". The move will reportedly help the iPhone maker to lower its reliance on manual labour and boost production efficiency, as Apple continues to shift some of its manufacturing outside China.

Apple's automation drive reportedly spans all major product lines, including the iPhone, iPad, Apple Watch, and Mac. According to the publication, which cites supply chain sources, Apple has made automation a mandatory requirement for order contracts, while footing the cost of equipment upgrades on their own, in the hopes of boosted yields and lower assembly costs in the future.

The latest push for automation is closely tied to its broader strategy of shifting production away from China. The company is increasingly moving its iPhone assembly to India, whereas the manufacturing of iPads, Apple Watches, AirPods, and Macs is being relocated to Vietnam.

Initially, only existing mass-produced models were included in this transition, but new product lines are now included as well. Suppliers told the publication that automation assists in maintaining consistent quality and minimising production variability amid these dispersed manufacturing sites.

The report also states that Apple no longer funds production equipment, except when supporting its 2030 carbon neutrality goals. While automation isn't officially labelled as a green initiative, it is expected to manage risks tied to expanding manufacturing beyond China.

Apple has yet to publicly address these claims, which indicate a clear shift towards automated production of most of its products. The company has already committed to investing in several countries, including India, Indonesia, and the US. It is currently unclear how many local workers from these areas will benefit from these investments, if its supply chain partners ramp up automated production of the company's devices.