Apple's AirPods Production Shifts To India: Foxconn Will Begin Manufacturing In 2025

Apple Inc AAPL supplier Foxconn Technology Group will begin manufacturing its AirPods wireless earphones in India in early 2025.

Foxconn will start assembling AirPods at a new factory near Hyderabad in Telangana state in the first quarter of 2025, Bloomberg reports.

The factory has started its trials of AirPods and will ramp up manufacturing after production begins.

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Driven by government subsidies, earphone devices became the second primary Apple product to be assembled in India after the iPhone. 

The pandemic prompted U.S. companies to diversify their semiconductor supply chain beyond China, which faced disruption during the 2020 pandemic, triggering a crisis for semiconductor chips used in electronic gadgets and vehicles.

Donald Trump’s re-election in the U.S. could further amplify the shift away from China.

Reports indicated Apple weighing plans to manufacture iPads and AirPod cases in India.

Apple has reportedly revealed its research and development subsidiary debut in India, focused on developing new technologies and existing products. After successfully launching its first two stores in Delhi and Mumbai, the company eyed four new retail stores in Bengaluru, Pune, Delhi-NCR and Mumbai. Apple’s two stores have generated ~INR800 crore ($94.3 million) in revenues in their first year, with 60% of sales coming from the smaller Delhi store.

Apple iPhone exports reached $6 billion, up by 33% in the six months ending September. Apple seems on track to breach its ~$10 billion export target for 2024.

Investors can gain exposure to Apple through Vanguard Mega Cap Growth ETF MGK and iShares Russell Top 200 Growth ETF IWY.

Price Action: AAPL stock is up 0.37% at $248.88 premarket at last check Friday morning.

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