Apple Pushes Suppliers to Embrace Robotics

Apple is turning up the pressure on its supply chain. According to a new DigiTimes report, the company now requires suppliers to adopt robotics and automation in their factories, or risk losing future contracts. What was once encouragement has become a hard rule. 

Why Apple Wants Robots Now

For years, Apple has invested heavily in equipment for its manufacturing partners. That approach is changing. Instead of footing the bill, Apple is now asking suppliers to fund their own robotic systems. This move is putting financial strain on some partners, who face high upfront costs and potential disruptions while switching to automated production.

But Apple sees big advantages. Robots cut down on labor needs, improve consistency across factories in different countries, and help stabilize costs long-term. They also provide insurance against global events, like COVID-19 restrictions, that exposed the risks of relying on large human workforces.

A Shift in the Supply Chain

This mandate isn’t limited to one product. From iPhones and iPads to Macs and Apple Watches, Apple wants automation across the board. Standardized robotics mean that whether a device is made in China, India, or elsewhere, the results will look the same. That consistency is crucial as Apple continues to spread production across multiple countries to reduce dependency on China.

Suppliers, however, are feeling the pinch. With no subsidies from Apple, margins are taking a hit. The upfront investments are steep, and the transition period brings added challenges.

Bigger Picture: Beyond China and Into the U.S.?

Apple’s push for automation also ties back to geopolitics. The U.S.-China trade war pushed Apple to diversify its supply chain, leading to expanded operations in countries like India. By making robotics the baseline, Apple can more easily shift production wherever it needs to without worrying about labor availability or cost.

Some even see this as laying the groundwork for iPhones to one day be assembled in the United States. Apple reportedly told U.S. officials years ago that “robotic arms” would be essential if iPhone manufacturing were to move stateside. With more automation in place, that idea may not be as far-fetched as it once seemed.