According to a recent report by Reuters, Apple is continuing to expand its manufacturing presence in India by shifting the production of AirPods to the country.
Foxconn, a Taiwanese contract manufacturer, has been awarded the order to produce AirPods for Apple and is planning to establish a factory in India for this purpose.
The move is significant as it will make Foxconn an AirPod supplier for the first time and also aligns with Apple’s ongoing efforts to diversify its production away from China.
While AirPods are currently manufactured by several Chinese suppliers, Foxconn’s investment of over $200 million in the new India plant demonstrates its commitment to the region. The report did not specify the value of the AirPod order.
According to an anonymous source, Foxconn officials had deliberated internally for several months on whether to manufacture AirPods due to the lower profit margins involved.
However, the company ultimately decided to go ahead with the deal to strengthen its relationship with Apple and improve its chances of securing orders for new products.
The source also stated that the decision to establish production facilities in India was made at Apple’s request.
Foxconn competes with other Taiwanese manufacturers like Wistron Corp and Pegatron Corp to secure more orders from Apple, which is currently the world’s most valuable company.
Foxconn’s subsidiary, Foxconn Interconnect Technology Ltd, is planning to commence construction of a production facility in Telangana in the latter half of this year and aims to begin manufacturing by the end of 2024 at the earliest, according to the anonymous source.
