iPhone maker Apple is reportedly planning to begin production of AirPods at Foxconn facility in Hyderabad starting in April, with initial shipments intended for export to the U.S. and Europe, ET reported.
The move would make AirPods the second Apple product to be manufactured in India, following the iPhone, which the company has been producing in the country for several years.
Foxconn’s $400 million investment and production plans
Foxconn, Apple’s contract manufacturer, had approved an investment of $400 million (about Rs 3,500 crore) to set up the Hyderabad plant in August 2023.
The report further said that the company will start with small-scale production of two base AirPods models—AirPods 4 and AirPods 4 (with Active Noise Cancellation)—before ramping up production in the following three to four months.
“AirPods are going to be shipped out starting April. This is not for the domestic market right now, but domestic demand will be met eventually,” an industry executive told ET.
Apple has long been a dominant player in the global true wireless stereo (TWS) market, with a 23.1% market share in 2024, according to research firm Canalys. Last year, the company shipped 81.8 million AirPods, making them the highest-selling wireless earbuds worldwide.
Shifting production out of China
Apple’s expansion of AirPods production to India is seen as part of a broader global supply chain diversification strategy. The report noted that Apple plans to shift at least 50% of its export production out of China in the coming years, driven by rising costs and increasing trade tensions between the U.S. and China.
The Trump administration’s recent tariffs have added an additional 10% duty on hearables imported from China, making production in China more expensive for companies like Apple. This follows a previous 10% tariff, effectively doubling the cost of exports from China to the U.S.
India’s role in Apple’s global strategy
India is already the world’s second-largest smartphone manufacturer, with Apple and Samsung leading exports. In 2024, Apple exported $12.8 billion worth of iPhones from India, accounting for a significant share of the country’s total smartphone exports of $17.5 billion.
Meanwhile, the India Cellular and Electronics Association (ICEA) has been advocating for lower import tariffs on wearables, IT hardware, and mobile phones to boost domestic manufacturing competitiveness. India currently imposes a 20% tariff on finished wearables, with calls for a production-linked incentive (PLI) scheme to support the sector.
