Apple to try new manufacturing techniques

Apple will be looking to increase its manufacturing output by investing $10.5 billion in new manufacturing technology.

In order to combat with tech rivals and get a jump on creating new products, the California-based company will be investing the $10.5 billion in assembly robots and milling machines. Bloomberg reported that these new machines will be used to do the behind-the-scenes work, which includes mass building products, polishing designs and testing certain aspects of the product.

Stay ahead of the game
Experts believe the company is sinking more money into its manufacturing technology to stay ahead of competitors. Muthuraman Ramasamy, an analyst for Frost & Sullivan, told Bloomberg that Apple can invest in this technology because they have a high level of revenue.

"Their designs are so unique that you have to have a very unique manufacturing process to make it," Ramasamy said in an interview. "Apple has so much cash that they can invest in cutting-edge, world-class machinery that is typically used for aerospace and defense."

Bloomberg reported that the $10.5 billion Apple has forecasted for capital expenditures for fiscal 2014 is only a portion of the $171 billion it made in sales in 2012. The $10.5 billion earmarked for investments is still a little less than its competitors, including Samsung, which Bloomberg said will use $22 billion in capital expenditures for this year.

Updating manufacturing output
This is not the first time Apple has tried different manufacturing techniques to meet product demands {in most cases "in order" is not necessary}. Bloomberg stated that when the company was ready to manufacture the iPhone 4 in 2010, they needed a detailed machine in order to ensure the gyroscope technology - the component of the phone that helps with motion-detection capabilities - was working properly. No equipment of that caliber existed for the amount of output they wanted, so Apple's engineers created one.

Different design plan
The way Apple is going about their design and manufacturing process is a little different from other major electronics companies. Cormac Eubanks, product development director at Frog Design, told Bloomberg this manufacturing route is difficult, but Apple is pulling it off. It will also create jobs and make a demand for special skills for supply chain recruiters.

"Most companies will hire a design firm to create a rendering of a product, throw it over the wall to China and then it's the Chinese engineers who do the detailed engineering work," Eubanks said in an interview. "What Apple does is hard and it takes a lot of time and money."