Apple is planning to have its iPhone batteries fully manufactured on automated production lines in 2014 to reduce its manpower demand. The move is expected to trigger other brand vendors to follow suit, according to sources from the upstream supply chain.
Apple has already automated its Mac Pro and iMac production lines. Other than materials and final assembly, manpower is not required for the rest of the manufacturing.
With rising minimum wages in China and the fact that younger-workers are unwilling to work in the manufacturing industry, labor shortages and high turnover rates are common in the industry, which has increased costs, the sources said.
China is currently still the top choice for setting up a manufacturing base for IT brand vendors, as Southeast Asia still have issues such as constant labor strikes and limited infrastructure, the sources said.
With automated production lines, Apple will be able to move manufacturing to wherever it likes; however, since most of its other component supply partners are still located in China, the US-based vendor is unlikely to make any significant moves in the short term, the sources added. |