Foxconn moves AirPods production to India in 2025
- Foxconn Technology Group will begin manufacturing AirPods in early 2025 at a new factory in Telangana, India.
- This shift is part of Apple's strategy to diversify its supply chain away from China, prompted by past disruptions.
- The move signifies a growing trend of U.S. companies manufacturing products in India to mitigate risks associated with reliance on a single country.
In early 2025, Foxconn Technology Group, a major supplier for Apple Inc., will commence the manufacturing of AirPods in a new facility located near Hyderabad, Telangana, India. This significant development marks the second primary Apple product to be assembled in India, following the successful production of iPhones. The shift to Indian manufacturing aligns with broader trends among U.S. companies looking to diversify their supply chains away from China, particularly in response to disruptions caused by the COVID-19 pandemic, which affected the global semiconductor market. The decision to expand manufacturing capabilities to India comes as Apple seeks to mitigate risks associated with reliance on Chinese production. The pandemic exposed vulnerabilities in the semiconductor supply chain, and U.S. companies have increasingly recognized the need to distribute their production more globally. Foxconn's upcoming factory is currently undergoing trials for AirPods assembly, with full-scale manufacturing expected to ramp up soon after production officially begins. Further, the political landscape in the United States, including the potential re-election of Donald Trump, may impact this ongoing diversification initiative. Reports indicate that Apple is also evaluating plans to manufacture additional products, such as iPads and AirPod cases, within India. This strategic move could enhance Apple's operational efficiencies and lower production costs, thereby increasing competitiveness in the market. Apple's expansion in India extends beyond manufacturing. The company has launched its first two retail stores in major cities like Delhi and Mumbai, generating substantial revenues. In its first year, these stores garnered approximately INR800 crore (around $94.3 million), with the smaller store in Delhi generating about 60% of those sales. Apple's focus on India also includes plans for a research and development subsidiary aimed at innovating new technologies and improving existing product lines, highlighting the company's commitment to investing in its operations within the country.