Apple is set to commence AirPods production at Foxconn’s Hyderabad facility from April, marking a significant expansion of its manufacturing footprint in India, industry sources revealed. The move will make AirPods the second Apple product category to be made in India, following the iPhone, though initial production will be exclusively for exports.
“Production of AirPods is going to start in India at Foxconn’s Hyderabad facility. It will begin from April but will be only for exports as of now,” a source told PTI.
Foxconn had approved a $400 million (₹3,500 crore) investment in August 2023 to set up the Hyderabad factory. This facility is now gearing up for mass production, strengthening India’s role in Apple’s global supply chain.
Apple Expands Its TWS Market Presence
Apple has been a dominant player in the True Wireless Stereo (TWS) segment, with a 23.1% market share in 2024, significantly ahead of Samsung, which holds just 8.5%, according to research firm Canalys.
The expansion of AirPods production in India is a crucial step, especially amid speculation about Apple’s shifting global manufacturing strategy following US President Donald Trump’s reciprocal tariffs on multiple countries, including India.
Tariff Concerns and Apple’s India Strategy
Apple’s $500 billion investment plan in the US over the next four years has fueled speculation about a potential reduction in its India production. However, the company’s continued expansion in India suggests a long-term commitment to the region.
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According to the India Cellular and Electronics Association (ICEA), India currently imposes a 20% import duty on hearables and wearables, whereas the US levies no such tariff. ICEA has proposed that India should consider waiving import duties on smartphones, hearables, and wearables imported from the US to balance trade and sustain Apple’s investment in the country.
With Trump’s reciprocal tariffs set to take effect on April 2, the Indian electronics industry is closely watching whether this will impact Apple’s AirPods production and broader manufacturing strategy in India.
For now, the Hyderabad facility will serve global markets, reinforcing India’s growing importance in Apple’s supply chain and the country’s ambition to become a global electronics manufacturing hub.
(This news was first reported by PTI.)
