Apple Inc. is putting a record $10.5 billion to work in new technology -- from assembly robots to milling machines -- that consumers will never see.
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.
The spending, which Apple outlined in its fiscal 2014 capital-expenditure forecast, underscores how the world’s most valuable company is diving deeper into designing and inventing technology for its manufacturing process. Apple is increasingly striking exclusive machinery deals, said the people familiar with the work, outspending peers on the tools that it then places in the factories of its suppliers, many of which are in Asia.
“Their designs are so unique that you have to have a very unique manufacturing process to make it,” said Muthuraman Ramasamy, an analyst with consulting firm Frost & Sullivan, who has studied the use of the machinery. “Apple has so much cash that they can invest in cutting-edge, world-class machinery that is typically used for aerospace and defense.”...MOREHT: Pulse 2.0
We haven't seen much out of Terry Gou, Foxconn and the robots after a flurry of stories late last year:
Foxconn Sees New Source Of Cheap Labor: The United States (AAPL)
Here's the Robot that Foxconn Will Use to Build Their Million-strong "Robot Kingdom" (ABB; AAPL)
What May Happen When the Foxconn Robots Become Self-Aware
iPhone Manufacturer Foxconn to Build an 'Intelligent Robotics Kingdom' in Taiwan (AAPL)
It appears Foxconn (Hon Hai) may be heading to the Grand Canyon State:
Arizona officials court Taiwan iPad, Kindle maker
Foxconn mulls building TVs, display panels in Arizona
Foxconn could follow Apple to Arizona
