Apple Forces Suppliers to Pay for Automation Amid Trade War Shift [Report]

A new report says Apple is stepping up efforts to automate its supply chain, a shift tied to tariffs from the Trump-era trade war. Industry insiders told Digitimes that Apple is now requiring suppliers to invest in their own automation equipment, aiming to cut labor reliance and maintain consistent production quality as the company expands manufacturing beyond China.

The changes affect Apple's biggest products — iPhone, iPad, Apple Watch, AirPods, and Mac. iPhone assembly is shifting heavily to India, while other devices are moving to Vietnam. As we've previously reported, Apple now operates five iPhone factories in India. Expanding across multiple countries has made automation a key requirement for ensuring that production standards remain the same worldwide.

Suppliers say the new rules mark a sharp break from past practice. Digitimes notes that "unlike past instances where Apple invested directly in production equipment, it now requires suppliers to bear full automation costs, with order volume incentives as the primary financial encouragement." This has put pressure on partners' margins, as early-stage automation can be costly and complex to roll out.


The only exception is Apple's environmental initiatives. The company continues to support upgrades that align with its 2030 target for carbon neutrality, but those subsidies are separate from automation requirements.

Suppliers acknowledge that adopting robotics carries a steep learning curve. "Deploying robotic arms and related automation technology often requires additional labor and can initially slow production relative to experienced manual workers," the report said. Still, Apple believes the long-term benefits — higher yields and lower costs — outweigh the short-term pain.

More details in the report linked below...

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