Thematic Spotlight: Apple to Produce AirPods in India for the First Time

Apple Inc. will begin producing AirPods in India for the first time early next year, marking a significant milestone for Indian manufacturing, as well as Apple’s efforts to reduce reliance on Chinese supply chains.1 Foxconn Technology Group, a key Apple supplier, will assemble AirPods at a new factory near Hyderabad in Telangana state, with full-scale production expected to ramp up quickly after trials.

AirPods will be the second major Apple product to be manufactured in India. The company has produced older-generation iPhones in the country since 2017.2 However, Apple’s new expansion in India highlights the multitude of tailwinds India currently enjoys. Government subsidies such as “Make in India” installed by newly re-elected Prime Minister Narendra Modi, and a growing skilled workforce, as well as advancements in local technology, have made India an attractive and growing hub for new age manufacturing.3 Apple’s shift also aligns with an increasingly popular strategy to diversify the supply chain amid rising tensions between the U.S. and China.

Apple is the world’s largest producer of wireless electronic devices (e.g. smartphones, headphones), having shipped 16.8 million units in Q2 alone, representing roughly 22% of the global market share.4 India, which is expected to make up to 25% of Apple’s iPhones by 2028, was responsible for exporting nearly $6 billion worth of the company’s devices in the 6 months through September this year.5,6

As we head into 2025, India’s manufacturing growth could accelerate further, especially with Donald Trump’s return to the US presidency potentially introducing stricter tariffs on Chinese imports. This policy shift could push more companies like Apple to expand their operations in India, solidifying the country’s role as a critical player in global supply chains.

Access India with NDIA.

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