Photograph: Puddingworld, CC BY-SA 4.0/Wikimedia Commons
Foxconn will quickly begin making AirPods for Apple. For this, the Taiwanese firm will spend upwards of $200 million to construct a manufacturing unit in India.
Foxconn has by no means assembled AirPods for Apple regardless of being its greatest contract producer. This may change as soon as its new manufacturing unit in India is prepared.
Apple continues shifting out of China
The transfer can be necessary for Apple, because it additional diversifies its provide chain outdoors of China. Apple moved part of AirPods manufacturing from China to Vietnam in 2019. After COVID struck, the corporate deliberate to maneuver AirPods Studio and Apple Watch manufacturing to Vietnam.
Apple’s efforts to make AirPods and Beats headphones in India had been first reported in November 2022.
A Reuters report claims Foxconn will make investments over $200 million to construct a brand new manufacturing unit in Telangana, a southern Indian state. For months, executives contained in the Taiwanese firm debated about assembling AirPods for Apple because of the decrease revenue margins.
Ultimately, Foxconn determined to go forward to “reinforce engagement” with Apple. This might additionally assist the corporate safe extra orders from the iPhone maker for future merchandise.
Apple reportedly requested Foxconn to arrange its manufacturing manufacturing unit in India. The Taiwanese contract producer will begin constructing the meeting plant within the second half of the 12 months. Nonetheless, manufacturing is barely slated to start on the finish of 2024 on the earliest.
Since Foxconn’s manufacturing unit continues to be a few years away from being prepared, it’s unclear which AirPods mannequin the corporate will construct for Apple.
India may very well be the following China for Apple
India has grow to be a significant manufacturing hub and marketplace for Apple. The iPhone maker not too long ago made organizational modifications to focus extra on India. It is usually anticipated to maneuver a minimum of 25% of iPhone manufacturing to India by 2025.
Foxconn apparently additionally intends to ramp up its funding efforts in India to construct extra smartphones, EVs, and different merchandise within the nation. The corporate desires to scale back its reliance on China as its predominant manufacturing hub to cater to its shoppers higher.
