Apple Reportedly Asking Suppliers to Move Some AirPods, Beats India Production: Full Details

Apple is asking its suppliers to move some production of AirPods and Beats headphones to India for the first time, Nikkei reported on Wednesday, in what could be another victory for New Delhi in its push for local manufacturing.

Apple IPhone maker Foxconn is gearing up to make Beats headphones in India and hopes to eventually produce AirPods in the country too, the report said, citing sources.

Luxshare Precision Industry, a Chinese supplier to the iPhone maker, and its units also plan to help Apple manufacture AirPods in India, according to the report.

However, Luxshare is more focused on its Vietnamese AirPods operations at the moment and may be slower than competitors to start significant production of Apple products in India, the Nikkei newspaper said.

Apple did not immediately respond to a request for comment from Reuters.

The tech giant has moved some iPhone production areas from China to other markets, including India, where it started manufacturing the iPhone 13 earlier this year, and also plans to assemble iPad tablets. The company last week announced plans to manufacture the latest iPhone 14 in India.

Bloomberg news report Tuesday said iPhone exports from India exceeded $1 billion (about Rs 8,134 crore) in the five months since April and are expected to reach $2.5 billion (about Rs 20,350 crore) over the 12 months to March 2023.

Apple’s latest move is part of its gradual diversification from China, the Nikkei report said. India and other countries such as Mexico and Vietnam are becoming increasingly important for contract manufacturers supplying American brands amid COVID-related lockdowns in China and simmering tensions between Washington and Beijing.

© Thomson Reuters 2022

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