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Apple Will Spend $10.5B in 2014 to Bolster its Supply Chain

by Jacob Kleinman | November 13, 2013November 13, 2013 9:30 am PDT

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Apple has set $10.5 billion aside for device production, Bloomberg reports, and will spend the money on new robots, lasers and milling machines to manufacture iPhones, iPads and upcoming products. The amount Cupertino will spend was previously revealed in the company’s 2014 capital-expenditure forecast, but now we’re learning how that money will be spent.

According to Bloomberg‘s anonymous sources, Apple outspends most of its competitors when it comes to the manufacturing process, often signing exclusive contracts for machinery and working with the most cutting-edge technology available. The company also pays for its employees to visit Asia for weeks at a time to ensure every part of the manufacturing process is in order, and hires robotic and engineering experts to work on site.

Apple is also expanding its production capabilities in the U.S., and reportedly plans to partner with GlobalFoundries to manufacture its smartphone and tablet chips at the company’s facility in Malta, NY. The move is allegedly part of the iPhone-maker’s efforts to reduce its dependence on Samsung, which manufactured the A7 chip found in Apple’s latest generation of devices, though the South Korean company will apparently help get the NY-based operation up and running.

bloomberg

Jacob Kleinman

Jacob Kleinman has been working as a journalist online and in print since he arrived at Wesleyan University in 2007. After graduating, he took a...

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