Foxconn will soon start making AirPods for Apple. For this, the Taiwanese company will spend upwards of $200 million to build a factory in India.
Foxconn has never assembled AirPods for Apple despite being its biggest contract manufacturer. This will change once its new factory in India is ready.
Apple continues moving out of China
The move is also important for Apple, as it further diversifies its supply chain outside of China. Apple moved a part of AirPods production from China to Vietnam in 2019. After COVID struck, the company planned to move AirPods Studio and Apple Watch production to Vietnam.
Apple’s efforts to make AirPods and Beats headphones in India were first reported in November 2022.
A Reuters report claims Foxconn will invest over $200 million to build a new factory in Telangana, a southern Indian state. For months, executives inside the Taiwanese company debated about assembling AirPods for Apple due to the lower profit margins.
Eventually, Foxconn decided to go ahead to “reinforce engagement” with Apple. This could also help the company secure more orders from the iPhone maker for future products.
Apple reportedly requested Foxconn to set up its production factory in India. The Taiwanese contract manufacturer will start building the assembly plant in the second half of the year. However, production is only slated to begin at the end of 2024 at the earliest.
Since Foxconn’s factory is still a couple of years away from being ready, it is unclear which AirPods model the company will build for Apple.
India could be the next China for Apple
India has become a major manufacturing hub and market for Apple. The iPhone maker recently made organizational changes to focus more on India. It is also expected to move at least 25% of iPhone production to India by 2025.
Foxconn apparently also intends to ramp up its investment efforts in India to build more smartphones, EVs, and other products in the country. The company wants to reduce its reliance on China as its main manufacturing hub to cater to its clients better.
