Apple Turns to Foxconn for AirPods Production in India
Apple is reportedly planning to manufacture its AirPods in India through Taiwanese manufacturer, Foxconn. This move is seen as an important step for Apple to become less reliant on China, where many of its products are currently manufactured. Foxconn has won a contract worth over $200 million to build a factory in Telangana, southern India, for AirPods production. The news report cites two sources with knowledge of the matter.
AirPod Component Production Already Underway
The manufacture of AirPods in India has been on the cards for some time now. Earlier in the year, Apple had announced that it had found a company to manufacture key components for AirPods in India. The Indian subsidiary of US contract manufacturer Jabil had been tasked with building the AirPods bezels out of plastic, which Foxconn will now use in its factory in India.
Order Size Undisclosed
The actual size of the order is still undisclosed, but given the cost of the factory, it is expected to be significant. Foxconn manufactures 70% of Apple’s iPhones, but it has yet to build AirPods. However, other manufacturers like Luxshare ICT have already begun building these audio devices in locations in China and Vietnam.
Foxconn to Strengthen Commitment with Apple
One source stated that Foxconn had been debating internally for months whether to manufacture AirPods given the relatively tight margins. However, the decision was eventually made to strengthen the commitment with Apple and create a better relationship with the tech giant. Foxconn has recently faced massive problems with iPhone production in Zhengzhou, China, which cost Apple parts of its Christmas business.
Factory Construction to Begin in 2024
The Telangana factory will be built by Foxconn subsidiary Foxconn Interconnect Technology and will not begin production before the end of 2024. The move to India was made by Apple, and Foxconn hopes to receive follow-up orders from the company. Foxconn will also compete with other manufacturers, such as Pegatron and Wistron, to secure future business deals.
