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Apple Inc (NASDAQ:AAPL). is set to expand its manufacturing base by starting the production of its popular AirPods wireless earphones in India early next year, Bloomberg News reported, citing people familiar with the matter. This move signifies a significant shift for the tech giant, which has been increasingly looking to reduce its reliance on Chinese manufacturing.
The production will be undertaken by a Foxconn (SS:601138) Technology Group unit, which is slated to begin assembly at a new facility located near Hyderabad in the state of Telangana around the first quarter of 2025. According to sources familiar with the development, who requested anonymity, the factory is currently conducting trial production runs of AirPods. Full-scale manufacturing is expected to accelerate swiftly following the initial production phase.
This initiative will make AirPods the second major Apple product to be assembled in India, following the iPhone. Apple's expansion in India has been bolstered by a combination of factors including subsidies from Prime Minister Narendra Modi's government, a skilled local workforce, and the country's growing technological infrastructure.
India's role is becoming increasingly critical in Apple's strategy to diversify its production and mitigate geopolitical risks associated with its operations in China. The ongoing tensions between Washington and Beijing have prompted companies like Apple to explore manufacturing alternatives. The potential re-election of Donald Trump in the United States could further catalyze this shift away from China.
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