Apple will begin assembling its popular AirPods wireless earphones in India for the first time early next year, marking a significant step in the company’s strategy to diversify its manufacturing base beyond China, Bloomberg reports.
Sources familiar with the matter, who requested anonymity due to the confidential nature of the information, revealed that a Foxconn Technology Group unit will commence AirPods assembly at a new facility near Hyderabad, Telangana state, around the first quarter of 2024. The factory is currently conducting trial runs, and full-scale production is expected to ramp up rapidly after the official launch.
This development makes AirPods only the second major Apple product, after the iPhone, to be assembled in India. The rapid expansion of Apple’s Indian manufacturing network is attributed to several factors: Prime Minister Narendra Modi’s government incentives, a skilled workforce, and significant advancements in India’s technological infrastructure.
India is now a crucial component of Apple’s plan to reduce its reliance on China amidst escalating US-China tensions. A potential re-election of Donald Trump in the US could further accelerate this shift, as companies seek to mitigate risks associated with the complex geopolitical landscape.
Apple holds the top spot globally in the true wireless stereo (TWS) market, encompassing earphones and headphones. Canalys data shows the company shipped 16.8 million TWS units in the second quarter of this year, capturing a 22% market share.
The move to Indian production is expected to significantly boost India’s electronics exports. Exports of Apple iPhones from India already surged by one-third in the six months ending September, reaching nearly $6 billion. While some AirPods components have previously been shipped from India (AirPods enclosures from Jabil Inc. to China and Vietnam), the upcoming assembly in India represents a major leap forward.
