Apple is all set to launch iPhone 17 series and a slew of other products like watches, AirPods at its “Awe Dropping” event on September 9. Although pretty much everything about these devices has been leaked by insiders, yet tech-enthusiasts and experts are excited to see what’s new this year.
Apple Modernising Production?
However, prior to the launch of the iPhone 17 series, a new report from DigiTimes has claimed something about the company’s production strategies. The new report states that the tech giant is significantly accelerating the rollout of automation and the use of robots across its manufacturing supply chain.
This decision reflects Apple’s plans to encourage suppliers to modernise their factories. Nonetheless, the company is now taking things a step further by making automation mandatory rather than optional. So much so that suppliers who fail to invest in robotics risk losing orders for upcoming iPhones, iPads, Macs, and Apple Watches.
Why push for automation?
Apple has now been planning to reduce it’s dependence on countries like China to manufacture iPhones, and just when it started to shift production bases in India other roadblocks appeared. One of them being China recalling back engineers from Foxconn manufacturing plants in India, the second one being the tariff threat from US President Trump, who says he will put tariffs on all iPhones manufactured outside the US, from which although is cushioned.
Challenge for suppliers?
However, with automation now mandatory, the cost will be borne by suppliers. Unlike in the past, when Apple often subsidised or directly financed machinery for its contract manufacturers, suppliers are reportedly expected to foot the bill themselves.
This transition to robotics involves steep upfront investments and operational disruption during the integration phase for suppliers. Some suppliers are said to be even struggling to absorb these costs, raising concerns about profitability and competitiveness. Despite this, Apple’s leverage as a client is leaving little room for negotiation.
Apple’s iPhone manufacturing in India:
The company has been focusing heavily on the Indian market in recent times and has five operational iPhone factories in the country, which are operated by Foxconn and the Tata Group. The company is now sourcing its US-sold iPhones in India and has reportedly been working on ramping up production capacity in the country.
Recent reports had revealed that Foxconn had begun the production of the iPhone 17 series on a small scale in its second-largest manufacturing unit at Bengaluru, India. The company is said to be manufacturing all four models of the iPhone 17 series at its iPhone factories in India.
