Apple pushes suppliers to adopt automation. Check it out.

By: Ajay Ajay

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Updated on: 03-Sep-2025

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So, in the last few updates, we reported that Apple has asked its suppliers to upgrade themselves if they want to continue producing iPhones, iPads, Macs, and Apple watches. This will result in a significant update and impact on how Apple manages its production network. So, let's make the update easier for you to understand.

Automation becomes mandatory.

According to industry news, Apple has made it mandatory for their production partner to increase automation in their production line. This is not similar to the past, when Apple funded the production partner for the advanced machine, but now they must pay for the upgrade themselves. This means that the production partner has two options: upgrade themselves or lose the Apple production contract.

According to the latest update, Apple intends to automate 50% of the iPhone assembly line by 2030, which will allow for faster and more consistent production without relying on human labor. This does not imply that they are working on eliminating human labor production, but rather on reducing human labor reliance.

Why Apple Is Making This Move.

There are several reasons why Apple made this move:

• Rising labor costs: China has been one of Apple's major production hubs for years, but it is now Apple's sole production partner, relying entirely on thousands of human workers. Now, labor costs in China are rising, raising assembly costs.

• Quality control: According to Apple, the automation system produces more consistent and error-free results during production.

• Political tensions: As you are aware, the political tensions between the U.S. and China. Which may affect Apple's business.

• Diversification: As a result of the issues in China, Apple is considering expanding its production line to other countries rather than relying on a single country. Apple is moving production to countries such as India and Vietnam.

What It Means to Suppliers

So, through this action, Apple is providing both opportunities and pressure to its suppliers. On the one hand, adapting automation allows suppliers to improve production efficiency while also securing a long-term partnership with Apple. On the other hand, they bear the entire cost and load of upgrading. Apple helps the supplier in many ways, including the use of green energy and sustainable materials, but in the case of automation, they completely remove themselves from the situation.

The bigger picture

This news clearly indicates that Apple's production is becoming less labor-intensive and more robotic. While not completely reliant on machines, they seek to strike a balance between automation and human labor while saving themselves from rising costs, political risks, and production quality.