Apple Turns Up the Volume on AirPods Production in India
Auguras Pipiras
Toggle Dark Mode
Apple is building a lot more in India than just iPhones. A new report reveals that the country will soon also be home to expanded facilities for manufacturing Apple’s AirPods, positioning India as a bigger player in Apple’s global supply chain.
According to The Economic Times, Foxconn’s plant in Hyderabad is set to double its output of AirPods less than a year after its production lines went into operation, scaling up to 200,000 units a month within the next six to eight months.
This isn’t new output so much as a supply chain reshuffle, notably moving over from Vietnam rather than China. Foxconn’s subsidiary, Foxconn Interconnect Technology (FIT), the division responsible for accessories and connectors, plans to overhaul five existing production lines using machinery that’s coming from Foxconn’s facilities in Vietnam.
This will result in an additional investment of 48 billion rupees in India by Foxconn, roughly equivalent to $550 million in US dollars. It also means more than doubling the number of workers at the facility, which is now expected to employ around 5,000.
The increased production is intended to meet local demand for Apple’s earbuds in India, as well as supply North American and European customers. That move fits neatly into Apple’s broader push to spread production across several countries — a diversification strategy that’s been years in the making.
Apple’s Diversification Dream
Current US trade tensions with China have left Apple navigating tricky waters in its supply chain. While the Trump administration would strongly prefer Apple build the iPhone and other products in the United States, that’s not as simple as it sounds.
Apple has committed to other significant domestic investments, including sourcing rare earth minerals and building Apple Intelligence servers in the US, but there’s no economically feasible way to manufacture iPhones on US soil.
Instead, Apple has looked for ways to shift iPhone production out of China and into countries with fewer trade barriers, including India, where it’s already been making iPhones since at least 2019. That, combined with Tim Cook’s “very good relationship” with President Trump, has saved Apple from the worst of the tariffs — at least on iPhones.
Unfortunately, there’s more to Apple’s product lineup than just the iPhone, and popular accessories like AirPods have previously been left out of tariff exemptions that cover mainstream products like the iPhone, iPad, and Mac.
AirPods were initially excluded from tariff exemptions earlier this year, but were added to the exclusion list in September, making the current shift to India more about diversification than duty relief. However, that could change at any time, which adds further motivation for Apple to shift things around and ensure tariffs have a minimal impact on these products.
Balancing China and India
Apple has also faced challenges from China, which has bristled at Apple’s efforts to relocate parts of its supply chain and blocked high-tech exports to stifle the company’s attempts to move equipment and materials to India and other countries. In July, pressure from Beijing led Foxconn to recall a significant number of workers to China.
Apple CEO Tim Cook recently pledged significant new investments in China, reassuring officials that Apple plans to continue not only doing business in the country, but also expand its investment in Chinese suppliers and operations. Nevertheless, Apple’s chief executive has long been a master of the supply chain and knows the wisdom of keeping Apple’s eggs in more than one basket.
For Apple, diversification isn’t just a hedge — it’s now a habit. If India’s production ramps as planned, the country could soon rival Vietnam as Apple’s top hub for accessories — a sign that Cupertino’s diversification playbook is working.
