Apple to Start AirPods Production in India, Strengthening ‘Make in India’ Initiative

Apple Expands Manufacturing in India with AirPods Production

Apple is set to expand its manufacturing footprint in India by producing AirPods locally for export, further supporting the government’s ‘Make in India’ initiative. This marks a significant step for Apple, as AirPods become the second product category, after iPhones, to be manufactured under India’s Production-Linked Incentive (PLI) scheme. The initiative, originally launched by Prime Minister Narendra Modi in September 2014, aims to boost domestic production and attract foreign investment.

According to industry sources, Apple will manufacture non-ANC (Active Noise Cancellation) AirPods at Foxconn’s Hyderabad plant, with production expected to commence in April 2025. While Apple has not officially confirmed this, the move aligns with the company’s growing commitment to India as a key manufacturing hub.

India’s true wireless stereo (TWS) market grew by 14% year-on-year in 2024, driven by factors such as seasonal sales, competitive pricing, and expanding consumer demand. The local manufacturing of AirPods could further accelerate this growth, making high-quality Apple products more accessible globally.

Apple’s commitment to Indian manufacturing is evident in its record-breaking iPhone export figures. The company exported iPhones worth ₹1 lakh crore ($12 billion) between April 2024 and January 2025, marking a more than 30% increase compared to the previous fiscal year. In January alone, iPhone exports reached an all-time high of ₹19,000 crore ($2.3 billion).

CEO Tim Cook has also highlighted Apple’s strong performance in India, stating that the iPhone was the top-selling model in the country during the October-December 2024 quarter. Apple’s growing focus on India suggests that the country could play a crucial role in the company’s global supply chain strategy, especially amid shifts away from China.

Alongside these developments, Apple recently introduced a new lineup of AirPods, including the AirPods 4, designed for enhanced comfort and sound quality. The decision to produce AirPods in India could help Apple streamline its global supply chain while reinforcing India’s status as a rising tech manufacturing hub.

What Undercode Say:

Apple’s Strategic Shift to India: A Win-Win Move?

Apple’s decision to manufacture AirPods in India isn’t just about expanding its supply chain—it’s a calculated move to capitalize on economic and geopolitical trends. The ongoing US-China trade tensions have pushed tech giants to diversify their production bases, and India presents itself as a strong alternative.

1. The ‘China Plus One’ Strategy

Many multinational companies are reducing their reliance on China by shifting production to countries like India and Vietnam. Apple’s expansion in India aligns perfectly with this strategy, allowing it to mitigate risks associated with China’s regulatory environment and labor costs.

2. PLI Scheme Benefits

India’s Production-Linked Incentive (PLI) scheme offers significant financial incentives to companies that manufacture within the country. With Apple already benefiting from PLI for iPhone production, extending this advantage to AirPods makes financial sense.

3. Boosting Local Manufacturing and Jobs

AirPods production in India will create thousands of new jobs, both directly at Foxconn’s Hyderabad plant and indirectly through local suppliers. This move will strengthen India’s electronics manufacturing ecosystem, paving the way for more high-value tech production.

4. Export Hub Potential

India is not just a growing consumer market but also an emerging export hub. With Apple achieving record iPhone exports, AirPods could follow suit, contributing significantly to India’s tech exports.

5. Impact on Indian Market

While the initial production of AirPods is focused on exports, there is a possibility that future models could be sold locally at reduced prices due to lower import duties. This could increase Apple’s market penetration in India, where pricing remains a critical factor for consumers.

6. Challenges Ahead

Infrastructure and Supply Chain Limitations: India’s manufacturing infrastructure is improving but still faces logistical challenges compared to China.
Skilled Workforce: While India has a large labor force, specialized training for high-tech manufacturing remains an area for development.
Component Sourcing: Apple still relies heavily on China for key components. Establishing a robust local supply chain will take time.

Final Takeaway

Apple’s expansion into AirPods production in India is a strategic move that benefits both the company and the country. If successfully implemented, it could make India an essential player in global electronics manufacturing while reducing Apple’s dependence on China. However, the road ahead requires continued investment in infrastructure, talent development, and supply chain enhancements.

Fact Checker Results:

Confirmed: Apple has already achieved ₹1 lakh crore in iPhone exports from India this fiscal year.
Unconfirmed: No official confirmation from Apple yet on AirPods production, though industry sources suggest it will start in April 2025.
Likely Impact: The move will strengthen India’s tech manufacturing sector and boost Apple’s global supply chain diversification strategy.

References:

Reported By: https://zeenews.india.com/technology/apple-to-start-production-of-airpods-in-india-for-exports-to-boost-make-in-india-initiative-2872980.html
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