Apple has been pushing to expand its manufacturing setup outside China. The COVID-19 pandemic, followed by geopolitical issues and macroeconomic factors were enough reasons for the US tech giant to diversify its supply chain worldwide. India has been one of the go-to hubs for Apple lately. The company has repeatedly emphasised how important the market is, not just from growth and sales but also from a manufacturing perspective. Apple has partnered with its supply chain in India for the iPhone. Now, it is being reported that Apple is adding one more category product for local manufacturing in India, which is the AirPods.
A Reuters report claimed that Apple has partnered with Foxconn for making the AirPods in India. The company aims to build a factory in India to produce wireless earphones, according to a report.
Apple AirPods to be Made in India Soon
Apple will add another product from its portfolio after the iPhone for local manufacturing in India. The Apple AirPods will soon be made in India. According to the Reuters report, Apple and Taiwan’s Foxconn have joined hands to set up a new plant in India for the manufacturing of the company’s wireless earphones.
Foxconn is the world’s largest contract electronics maker. It reportedly assembles about 70 per cent of all iPhones sold worldwide. It will be the first time that Foxconn has been granted a deal to become an AirPods supplier, which was so far dominated by several Chinese suppliers, such as Luxshare Precision Industry, Goertek Inc, etc.
The Taiwanese supply chain partner for Apple will reportedly invest about $200 million to set up a plant in Telangana for AirPods manufacturing. “The person, who requested anonymity as the matter was not public yet, said Foxconn officials had debated internally for months about whether to assemble AirPods due to relatively lower profit margins on making the device, but ultimately opted to go ahead with the deal to “reinforce engagement” with Apple,” the Reuters report added. The deal could help Foxconn get more orders of other Apple products in the future. What this also translates to is more job opportunities for Indians.
Reuters, citing a source, further revealed that it was Apple who requested Foxconn to set up a plant in India for the manufacturing of the AirPods. It will, however, take some more time before the production begins. The report stated that Foxconn’s subsidiary, Foxconn Interconnect Technology Ltd, plans to start construction of a manufacturing facility in Telangana in the second half of this year and begin production by the end of 2024 at the earliest.
At the moment, the size of the order or its value is under wraps. However, the latest development further highlights Apple’s reliance on India when it comes to diversifying the supply chain. The company confirmed that its partners are making the iPhone 14 in India days after the launch. Previously, it used to take months for Apple’s India supply chain partners to start with the local manufacturing of the new iPhone. Hopefully, by the time Foxconn begins the production of AirPods, more Apple products will be confirmed for local manufacturing.
