Report: Apple Demands Suppliers Switch to Robotics for Manufacturing

[MacRumors]

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.

Article Link: Report: Apple Demands Suppliers Switch to Robotics for Manufacturing

 

[arkitect]

Yup.
24/7, no time off and no suicide nets.

Win Win for Tim!

 

[Premium1]

Gotta keep those margins up.

 

[ratspg]

It's inevitable, I have some business partners that did contracting for factories in China, and they were fully automated. Building smartphones 24/7. I was able to see videos of the process, it was wild, felt like living in some advanced reality I didn't even know was here yet. This is the future of the industry.

 

[Andres Cantu]

At some point, the law of diminishing returns will come into play and margin squeezes will no longer be possible. Couple that with a plateau in iPhone demand, and what will be Apple’s safety net? More stock buybacks?

 

[Radeon85]

I'd rather machines build them anyway, much more consistent quality.

 

[Premium1]

Guess this will make it easier to build more factories in more locations since it won't be worker-dependent any longer. Also can get more manufacturing out of China.

 

[Adam Warlock]

At some point they'll have to ask who will be left that can afford to buy new iToys to keep the coffers growing?

 

[HarryPot]

Big corporations are going to destroy the world.
The world needs regular and simple jobs like manufacturing and retail, without them poverty will increase.

I know these robots create some higher paid jobs, but it eliminates many more.

We are putting our happiness in getting new and shiny things on a yearly basis. Getting into debt while doing so. And all money goes to the same big corporations that own the big companies.

We supposedly live in the best "world economy" ever. But honestly, people don't seem to be happier than before.

 

[axantas]

This is simply a logical step. I doubht, assembling iPhones is a joy like the image suggests. It is rather "Modern Times" by Charlie Chaplin. We already had industrialization/automation processes more than a hunderd years ago. It was an ease for everyone.

The other side: You can have humans working for you or you can place machines to do their work - no more need for humans - except the buyers of the product.

It was difficult hundred years ago and it is not easier today.

Question: You would want to do that job - would you?

 

[ratspg]

Big corporations are going to destroy the world.
The world needs regular and simple jobs like manufacturing and retail, without them poverty will increase.

I know these robots create some higher paid jobs, but it eliminates many more.

We are putting our happiness in getting new and shiny things on a yearly basis. Getting into debt while doing so. And all money goes to the same big corporations that own the big companies.

We supposedly live in the best "world economy" ever. But honestly, people don't seem to be happier than before.

Major changes in society will have to happen for happiness to return. Buying the latest hardware every year isn't going to bring happiness.

For example, when I first started seeing AI coming into mainstream it was pitched as something that would handle all the boring mundane tasks so humans can focus on things they love and express creativity, etc. Then I see AI for music, movies, photos, and I start to wonder, if that is also replacing pure creativity what do they expect specifically these 'creators' to do?

It's a really odd time, and I've been pro-tech for the majority of my life as I've watched it evolve. I'm definitely not into it like I used to be, I feel cheated by it now.

 

[HarryPot]

This is simply a logical step. I doubht, assembling iPhones is a joy like the image suggests. It is rather "Modern Times" by Charlie Chaplin. We already had industrialization/automation processes more than a hunderd years ago. It was an ease for everyone.

The other side: You can have humans working for you or you can place machines to do their work - no more need for humans - except the buyers of the product.

It was difficult hundred years ago and it is not easier today.

Question: You would want to do that job - would you?

I'm sure many people would prefer to do that job vs. their current job situation.
I mean, we are replacing manufacturing and retail jobs. Those two gave huge amount of jobs all around the world.

 

[ducknalddon]

Big corporations are going to destroy the world.
The world needs regular and simple jobs like manufacturing and retail, without them poverty will increase.

I know these robots create some higher paid jobs, but it eliminates many more.

We are putting our happiness in getting new and shiny things on a yearly basis. Getting into debt while doing so. And all money goes to the same big corporations that own the big companies.

We supposedly live in the best "world economy" ever. But honestly, people don't seem to be happier than before.

Do you want to work on a factory floor or in retail?

 

[HarryPot]

Major changes in society will have to happen for happiness to return. Buying the latest hardware every year isn't going to bring happiness.

For example, when I first started seeing AI coming into mainstream it was pitched as something that would handle all the boring mundane tasks so humans can focus on things they love and express creativity, etc. Then I see AI for music, movies, photos, and I start to wonder, if that is also replacing pure creativity what do they expect specifically these 'creators' to do?

It's a really odd time, and I've been pro-tech for the majority of my life as I've watched it evolve. I'm definitely not into it like I used to be, I feel cheated by it now.

I agree.
I know the world has always had big changes, and change is inevitable.

But the pace at which changes happen now, and the direction "capitalism" is taking, I also don't feel to good about it.

 

[HarryPot]

Do you want to work on a factory floor or in retail?

It's not about if I want to do it, but if someone needs that job.

Robots are going to make the products, sell the products and ship the products.
And all the money is going to go to the few companies that can achieve that level of automation.

For the rest, we're only left working for those big corporations with decreasing salaries or selling to them cheaply (because they always take advantage of small suppliers).

 

[hyperactiv8]

Guess this will make it easier to build more factories in more locations since it won't be worker-dependent any longer. Also can get more manufacturing out of China.

This is the first thing that came to my mind. It is much easier to move robots and/or robotic workflows to a foreign country (i.e. India or the U.S.) than it is to get visas for thousands of Chinese/Taiwanese workers. This is the inevitable result of China pulling employees out of India and Apple discovering it is going to have a talent deficit in other countries.

 

[t0rqx]

Fix the f****in scratches and dents of the Macbook Pro screens. All of them have it. Its unbelievable that a cheap HP laptop has a perfect screen. While Apple is claiming it is using manufacturing methods to build their Macbooks like companies are building rockets and time machines.

 

[VulchR]

At some point, the law of diminishing returns will come into play and margin squeezes will no longer be possible. Couple that with a plateau in iPhone demand, and what will be Apple’s safety net? More stock buybacks?

Subscription fees. 🤬

 

[vegetassj4]

Now if they could only switch to robotics for their innovation.

 

[ikramerica]

See, slavery thwarts innovation. China has near slave conditions for factories and it makes human labor cheaper than innovation in the short term.

To bring manufacturing back to developed countries, automation is a requirement as there simply aren’t enough people to do menial repetitive tasks for no pay.

Same with farming. Europe has more automation in farming because there aren’t as many people available to slave in the fields. In the Americas, there are plenty, either in their home countries, or as exploited “migrants” the US and Canada.

 

[axantas]

I'm sure many people would prefer to do that job vs. their current job situation.
I mean, we are replacing manufacturing and retail jobs. Those two gave huge amount of jobs all around the world.

You are generally right regarding "replacing jobs". It is no progress replacing humans by machines, but I doubt, peaple in China like, what they are doing in that manufacturing process.

The problem is: Find decent work for these people.

 

[firstcitazen]

so why can't we build robots in America? If labor is the biggest cost why can't factories with robots work in America?

 

[brightonguy]

TL;DR: Apple is cutting costs to increase margins.

 

[ScottishDuck]

About to have build quality worse than a Tesla, yikes.

 

[Happy_John]

You are generally right regarding "replacing jobs". It is no progress replacing humans by machines, but I doubt, peaple in China like, what they are doing in that manufacturing process.

The problem is: Find decent work for these people.

Yes, this is the huge problem, and as yet we don't have a convincing solution for it.

We can't simply make "fake jobs", we can't tell people to dig a hole and then fill it in.

When I started out in work, I was working in printing and publishing ( hence Macs). I remember very early on meeting an older guy who was frustrated, to say the least. He was a typesetter. He physically set type and made plates for printing. And his job didn't exist anymore. Telling him to learn DTP wasn't a valid option because 1) that wasn't what he'd spent his working life doing up until now and 2) there were hundred sof young design school graduates who did know their way around DTP packages coming up behind him.

Yes, companies manufacture products to sell. But there needs to be people with enough disposable income to buy the things that are manufactured. People get an income from working.

The robots don't get paid, and, even if they did, they have no burning desire to buy cars or laptops.