Apple is expanding its manufacturing operations in India, with AirPods production set to begin in April 2025. This marks a significant step in Apple’s effort to diversify its supply chain beyond China and Vietnam.
The Foxconn facility in Hyderabad will handle AirPods assembly, with all units designated for export only. This move follows Apple’s successful iPhone production in India, which has helped the company reduce reliance on China and navigate global trade tensions.
Why Apple is Expanding Production in India
Apple has been gradually shifting production to India due to several key factors:
- Supply Chain Risks: The COVID-19 pandemic exposed vulnerabilities in Apple’s reliance on Chinese factories, leading to delays and supply shortages.
- Trade Tariffs: Ongoing U.S.-China trade tensions have resulted in higher tariffs on Chinese imports. By expanding in India, Apple can lower manufacturing costs for the U.S. market.
- Government Incentives: India has reduced import taxes on key components like circuit boards, making it more attractive for global tech firms.
The Hyderabad Foxconn plant received a $400 million investment in 2023 to support this initiative. Reports suggest trial production began in December 2024, and Apple is now ready to begin full-scale production.
What This Means for Apple and Consumers
With AirPods now being Apple’s second major product category manufactured in India, the company is strengthening its global supply strategy. However, it remains unclear which AirPods models will be produced in Hyderabad.
Apple’s move could also signal future expansions, potentially including iPads, MacBooks, and other accessories in its India-based production. For now, the company continues to balance its manufacturing presence across China, Vietnam, and India.
Final Thoughts
Apple’s decision to manufacture AirPods in India reflects its long-term strategy to diversify production and mitigate global trade risks. As India emerges as a key manufacturing hub, Apple’s presence in the country is expected to grow even further in the coming years.
