Apple to invest a record $10.5 billion in supply chain robots & machinery in 2014

[RaduTyrsina]

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According to a recent Bloomberg report, Apple is going to invest a record amount of $10.5 billion in the manufacturing process of its iPhone and iPad units. Adam Satariano with the Bloomberg publication points out that Apple’s investment is going to range from assembly robots to milling machines. Apple is apparently investing in the production process to give the the company a leg up on the competition. Satariano details further:

To get a jump on rivals like Samsung Electronics Co. and lay the groundwork for new products, Apple is spending more on the machines that do the behind-the-scenes work of mass producing iPhones, iPads and other gadgets. That includes equipment to polish the new iPhone 5c’s colorful plastic, laser and milling machines to carve the MacBook’s aluminum body, and testing gear for the iPhone and iPad camera lens, said people with knowledge of the company’s manufacturing methods, who asked not to be identified because the process is private.

Muthuraman Ramasamy, an analyst with consulting firm Frost & Sullivan, describes the new machinery that Apple is investing in:

Their designs are so unique that you have to have a very unique manufacturing process to make it. Apple has so much cash that they can invest in cutting-edge, world-class machinery that is typically used for aerospace and defense.

Apple is definitely making a lot of changes in its supply chain, probably effects of Tim Cook’s deep knowledge and expertise in this field. Recently, details on more advanced manufacturing processes from Apple have been revealed, as the company is looking to build a sapphire plant in Arizona and a chip fabric in upstate NewYork.

Source: Bloomberg