Apple is ramping up its manufacturing operations in India, with plans to begin production of AirPods in April 2025. This marks a significant shift as the tech giant works to diversify its supply chain, reducing its dependency on China and Vietnam for key product manufacturing.
The AirPods will be assembled at Foxconn’s facility in Hyderabad, with all units set to be exported. This decision builds on Apple’s previous success in shifting iPhone production to India, helping the company mitigate risks tied to global trade tensions and reduce its reliance on Chinese factories.
Why India?
Several factors are driving Apple’s decision to expand its manufacturing base in India:
- Supply Chain Stability: The disruptions caused by the COVID-19 pandemic highlighted vulnerabilities in Apple’s over-reliance on Chinese manufacturing. Moving production to India helps mitigate the risks of future disruptions.
- Trade Issues: Ongoing trade tensions between the U.S. and China have led to higher tariffs on Chinese-made products. By diversifying its manufacturing, Apple can lower costs for products sold in the U.S.
- Government Support: India has made significant strides to attract global manufacturers, offering reduced import taxes on key components like circuit boards. These incentives make India a more appealing location for production.
In 2023, Apple made a major commitment to the region, with a $400 million investment in the Foxconn plant in Hyderabad. The plant began trial production in December 2024, and full-scale operations are now set to begin in 2025.
What This Means for Apple and Consumers
This move signals a broader strategy for Apple to strengthen its global manufacturing footprint. AirPods will now join iPhones as one of the major Apple products produced in India, but it’s still unclear which specific AirPods models will be assembled in Hyderabad.
This could also open the door for future expansions. Apple may consider shifting the production of other products like iPads, MacBooks, and accessories to India in the future. For now, Apple will continue to balance its production between China, Vietnam, and India.
Looking Ahead
Apple’s decision to manufacture AirPods in India is part of a broader effort to build a more resilient and diversified supply chain. As India continues to emerge as an important manufacturing hub, Apple’s role in the country is likely to grow, helping the company navigate shifting global dynamics and stay ahead in an increasingly complex market.