Apple Manufacturing AirPods in India

Apple is set to manufacture AirPods in India, with Foxconn starting production at its Hyderabad facility in April, as reported by PTI, citing industry sources. However, the production will primarily focus on exports for the time being.

This initiative is part of Apple’s larger strategy to relocate more manufacturing outside China. The company is increasingly acknowledging India as a vital production hub amidst ongoing global trade tensions.

At present, Apple assembles an array of iPhone models in India, including all variations of the iPhone 16 series. With AirPods following suit, they will become the second significant Apple product to be produced in India. An industry insider informed PTI that the initial rollout would commence in April, strictly for export purposes.

Foxconn has previously committed $400 million (₹3,325 crore) to its Hyderabad facility for AirPods production, thereby reinforcing India’s position within Apple’s global supply chain.

Apple has been progressively moving its manufacturing operations from China due to rising geopolitical tensions and US trade policies under former President Donald Trump, resulting in reciprocal tariffs that disrupt global supply chains.

The company is already engaged in assembling iPhones in India through partnerships with Foxconn, Pegatron, and Tata Electronics. Several earlier models, such as the iPhone 14 and iPhone 15, have also been produced domestically.

The decision to produce AirPods in India aligns with Apple’s goal to diversify its operations while addressing the global demand for its widely loved TWS (true wireless stereo) earphones, a market segment where it maintains a leading position.

As per Canalys, Apple’s AirPods command a significant share of the global TWS market, capturing 23.1% as of last year, which is nearly three times the share held by Samsung, which ranks second at 8.5%.

Although the current production line in Hyderabad is concentrated on exports, it raises expectations that Apple may eventually start manufacturing AirPods for the Indian market. This shift could lead to reduced import costs and improved local availability.

In parallel, Apple is said to be planning an investment of $500 billion in the US amidst growing speculation about potential production adjustments in light of changes to trade policies.