Apple Inc Invests $10.5 Billion on Cutting-Edge Lasers, Robots to Ramp Up Production

Apple Inc invested $10.5 billion in assembly robots, milling machines and other new technology to boost its supply chain and speed up production of iOS devices.

According to Bloomberg's anonymous but reliable source, Apple Inc is shelling out billions to get a jump on competitors like Korean electronics giant Samsung and provide the groundwork for developing new iOS products. Apple is willing to spend more on the machines that mass produce the company's iPhones, iPads and Macs.

The investment includes boosting equipment that polishes the colourful plastic case of the iPhone 5C and the laser and milling machines to mold the aluminum body of Macbooks. The bolstering of the supply chain also includes testing equipment for the camera lens of both the iPhone and iPad.

The huge investment which Apple Inc has outlined in its fiscal 2014 capital-expenditure forecast indicates how Apple, recently named by Forbes as the world's most valuable company, is exploring deeper design concepts, while inventing technology to improve the production process.

Apple Inc has reportedly closed exclusive machine and equipment deals, according to people familiar with the company's supply chain. The company has spent more than its peers in manufacturing which it plans to place in supplier factories mostly in Asia.

According to analyst Muthuraman Ramasamy of consulting company Frost & Sullivan, Apple's product designs are so unique that it will also take a unique process to make them. He said Apple Inc is a very liquid company and can use the cash to invest in the latest cutting-edge equipment and machinery.

Apple's $10.5 billion investment is only a fraction of its $171 billion sales in 2012. Some of the profits were used to build the company's new offices in Cupertino. Samsung is the only consumer electronics company to spend more than Apple despite a $22 billion in capital expenditure at the beginning of fiscal year 2013.

The Wall Street Journal has reported that Apple Inc plans to add new assembly partners to increase the supply of iOS devices and meet high demand. New manufacturing partners in Asia will be expected to handle the production of the iPhone 5S, iPhone 5C, iPad Air and iPad Mini with retina display.

Apple Inc will reportedly negotiate with Wistron to manufacture the iPhone 5C, while Compal Communications will take care of the iPad Mini. The report also said Apple's main supplier Foxconn will focus on assembling the iPhone 5S.