Apple is set to begin manufacturing its popular AirPods wireless earphones in India, marking a significant step in the company’s diversification strategy and its growing presence in the country. The company already makes some models of iPhones in the country.
According to a report by Bloomberg, Foxconn Technology Group, a key Apple supplier, will commence AirPods assembly at its new facility near Hyderabad in Telangana state as early as the first quarter of next year.
The report, citing people familiar with the matter, said that trial production is already underway, with plans to ramp up quickly once full-scale manufacturing begins.
Why this is ‘big’ for Apple
This move will essentially make AirPods the second major Apple product to be assembled in India, following the iPhone. Apple has been steadily expanding its manufacturing operations in India, driven by factors such as government incentives, a skilled workforce, and advancements in the country's technological capabilities.
India’s emergence as a key manufacturing hub for Apple is part of the company's broader effort to reduce its reliance on China amid geopolitical tensions. The production of AirPods in India is expected to significantly boost Apple's exports from the country, which have already seen substantial growth in recent months.
While most AirPods are currently assembled in China and Vietnam, the majority of those produced in India are likely to be destined for other markets.
‘Not the first time’
This is not the first time that a report of Apple planning to shift AirPods production to India has cropped up. Earlier in October this year, a Times of India report said that the company will start making the casing for the product at the Pune factory of American contract manufacturer Jabil.
“It will be a mega operation, on the lines of the work done for iPhones, and will be focused mainly on global exports, considering that the market for AirPods is much bigger abroad than in India,” sources told TOI.
“The focus on exports means that Apple will create a second large manufacturing base outside China, which currently is one of the key production centres for most of its products. The plan was the same when the iPhone manufacturing had started,” one of the sources said.
The manufacturing of MacBooks in India, however, will take time.
“First, the volumes for Apple's premium notebooks are still limited here, and so the business case is also restricted. Also, with more than sufficient global production levels, creating new factories in India can lead to oversupply. Thus, MacBook production will take time as of now,” one of the sources added.