Apple is set to begin producing AirPods for export at the Foxconn plant in Hyderabad starting in April, according to sources familiar with the matter.
This move marks the company’s second major product category manufactured in India, following iPhones.
Foxconn will initially focus AirPods production on exports, with no plans to distribute them locally in India.
“Production of AirPods is going to start in India at Foxconn’s Hyderabad facility. “It will begin in April, but it will focus only on exports at this stage,” an industry source told PTI.
In August 2023, Foxconn approved a substantial investment of USD 400 million (around Rs 3,500 crore) to establish the factory in Hyderabad.
This move aligns with Apple’s ongoing efforts to diversify its manufacturing base outside of China, and it highlights the company’s commitment to expanding its operations in India.
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Apple’s decision to manufacture AirPods in India is also a significant step in the company’s leadership in the global true wireless stereo (TWS) market.
According to Canalys, Apple held a dominant 23.1% market share in 2024, nearly three times larger than its closest competitor, Samsung, which had 8.5%.
The production shift to India comes amid growing speculation about potential changes to Apple’s production strategy in the wake of the US government’s tariff policies.
US President Donald Trump had announced reciprocal tariffs, and Apple’s subsequent announcement of a USD 500 billion investment in US manufacturing facilities over the next four years has raised questions about the company’s future production decisions.
According to the India Cellular and Electronics Association (ICEA), India currently imposes a 20% import duty on hearables and wearables, including AirPods, while the US imposes no such duty.
ICEA has proposed that India would benefit from waiving the import duty on smartphones, hearables, and wearables, particularly those imported from the US.
The Trump administration’s plan to impose reciprocal tariffs on several countries, including India, starting April 2 has further complicated the outlook for production in the region.
Despite inquiries, neither Apple nor Foxconn has responded to requests for comment on how these tariff changes might impact their manufacturing strategies in India.
This new development marks a significant shift in Apple’s approach to production and global supply chains, as it continues to expand its manufacturing footprint in India.
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