Apple to Begin AirPods Production in India by Early 2025

Apple is set to expand its global manufacturing footprint by starting AirPods production in India in early 2025. According to a report from Bloomberg News, citing insiders, this move marks another step in Apple’s efforts to reduce its reliance on Chinese manufacturing and diversify its supply chain.

Production to Kick Off in Hyderabad

The assembly of AirPods will be managed by a unit of Foxconn Technology Group, with operations slated to begin at a newly constructed facility near Hyderabad, in the Indian state of Telangana, during the first quarter of 2025. Sources close to the development revealed that trial production runs are already underway, with full-scale manufacturing expected to ramp up soon after.

This marks the AirPods as the second major Apple product to be manufactured in India, following the iPhone. This shift not only highlights India’s growing importance in Apple’s global strategy but also reflects the country’s rising prominence as a hub for high-tech manufacturing.

Why India is Central to Apple’s Strategy

Apple’s decision to expand manufacturing in India is driven by several factors:

• Government Incentives: Prime Minister Narendra Modi’s administration has introduced subsidies and incentives to attract global tech companies.
• Skilled Workforce: India’s talented and cost-effective labour force offers a competitive edge for large-scale production.
• Infrastructure Growth: The country’s rapidly developing technological and manufacturing infrastructure supports Apple’s requirements.

This shift also aligns with Apple’s long-term goal of mitigating geopolitical risks tied to its operations in China, particularly in light of rising tensions between the United States and China.

Diversification Amid Geopolitical Shifts

Apple’s diversification strategy comes at a time of heightened uncertainty in US-China relations. Geopolitical factors, including the potential re-election of Donald Trump in the United States, could further influence companies like Apple to shift production to alternative locations. India, with its stable political climate and growing tech sector, offers a strategic solution.

What This Means for Apple and India

Apple’s growing investment in India underscores its commitment to reducing dependency on a single market while leveraging India’s burgeoning manufacturing ecosystem. For India, this represents a significant win, further establishing the country as a global technology and manufacturing powerhouse.

(Sources: investing.com, bloomberg.com)