Apple is mandating increased automation across its manufacturing supply chain to reduce dependency on China, improve quality, and enhance resilience amid geopolitical tensions and rising labour costs. Suppliers are now required to self-fund automation upgrades, marking a strategic shift in the tech giant’s global manufacturing approach.
Apple is intensifying its push to increase automation across its manufacturing supply chain as part of a strategic shift away from China, according to reports from industry sources and DigiTimes. This acceleration follows a two-year period during which the company gradually encouraged greater automation but now makes it a mandatory requirement for suppliers seeking production contracts.
The move aims to reduce labour dependency, improve product quality consistency, and lower long-term manufacturing costs. Apple’s new approach requires suppliers to fund their own automation upgrades, marking a significant shift from the company’s previous practice of subsidising such investments. This change reflects broader efforts to diversify Apple’s supply chain beyond China, amid geopolitical tensions and rising labour challenges.
US government pressures and tariff hikes on Chinese imports have further influenced Apple’s decision to relocate more production to countries like India. Data from Counterpoint Research shows a strong increase in iPhone exports from India, with total volumes growing over 30% in the first quarter following the last quarter of 2024, and shipments destined for the US market almost tripling in the same period.
Industry analysts note that Apple’s requirement for automation is likely to stabilise product quality and create uniform manufacturing standards across diverse production facilities. It also supports the company’s drive to boost production efficiency and resilience in a complex global trade environment.
While Apple has not publicly commented on the specifics of these automation requirements, suppliers familiar with the matter say failure to meet these standards could jeopardise their relationship with the tech giant. The rollout of robotics and automation technologies is seen as a critical step in Apple’s efforts to safeguard its supply chain against disruptions and to maintain competitive advantage in the global smartphone market.
Source: Noah Wire Services
