Apple might be headquartered in California, but it’s out east where a lot of the important work gets done; where your iPhones and iPads are ultimately put together.
As such, it shouldn’t come as much surprise to hear that Apple is investing a cool $10.5 billion in behind-the-scenes stuff like “assembly robots” (put Will Smith on standby) and milling machines.
That’s the story over on Bloomberg, with credit going to “people with knowledge of the company’s manufacturing methods”. Predictably, they “asked not to be identified because the process is private.” Very kind of you to share, though.
In addition, Apple is said to be striking exclusive deals with manufacturers, limiting their “ability to take additional” business – in the words of GT Advanced’s CEO.
“Their designs are so unique that you have to have a very unique manufacturing process to make it,” explains Frost & Sullivan analyst, Muthuraman Ramasamy. “Apple has so much cash that they can invest in cutting-edge, world-class machinery that is typically used for aerospace and defense.”
On a vaguely similar note, we recently heard that Apple is spreading the supplier love out east, bringing in Wistron to churn out iPhone 5c units, and Compal Communications for the iPad mini. Foxconn, meanwhile, is unwilling to expand production purely on account of Apple. Right on.