HomeTop StoriesApple expands production in India with AirPods assembly kit for 2024

Apple expands production in India with AirPods assembly kit for 2024

According to media reports, Apple (AAPL, Financials) will begin production of AirPods in India in late 2024, advancing a new phase in its efforts to diversify its supply chain beyond China. Major Apple partner Foxconn will oversee production at the Hyderabad factory; Full installation will start in early 2025.

The move expands Apple’s current manufacturing operations in India, where Apple builds iPhones in partnership with Foxconn, Wistron and Pegatron. The development underlines India’s growing importance in Apple’s global plan, especially as the company seeks to reduce its dependence on Chinese factories despite ongoing geopolitical and economic obstacles.

The supply chain of Apple AirPods components is already heavily dependent on India. For the wireless earbuds, for example, Jabil’s Pune factory produces cases and ships them to assembly lines in China and Vietnam. Apple is showing further commitment to India’s growing electronics manufacturing ecosystem by incorporating AirPods manufacturing into its operations there.

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Local production of AirPods could reduce costs, but it is not clear whether this would translate into price discounts for Indian buyers. Thanks in part to tariffs and high import costs for components, Apple’s products, including locally built iPhones, remain premium offerings in India.

Apple’s entry into India coincides with a period when the country is aggressively enticing multinational IT companies to establish local headquarters. This change could act as a spark for India’s ambition to become a global center of electronics manufacturing.

Apple declined to say how the revised production schedule will affect supply lines or price. Industry analysts, on the other hand, see this as a calculated move that will increase both Apple’s market share and India’s profile in global supply chains.

Apple is also expanding its technical capacity in related areas. To reduce dependence on suppliers like Broadcom, the company plans to include its own Bluetooth and Wi-Fi chips codenamed ‘Proxi’ in its products by 2025.

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Apple also unveiled artificial intelligence tools such as custom emoji generation in iOS 18.2 and ChatGPT integration with Siri, which help explain the 30% increase in stock this year.

Apple’s 6% year-over-year revenue growth in the fiscal fourth quarter, which financially amounts to $94.9 billion. Record highs in the company’s share price demonstrate investor confidence in its continued innovation and strategic direction.

This article first appeared on GuruFocus.

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