India Scores More Wins At The Cost Of China; Apple AirPods, Beats Production Could Soon Shift To The Country

Apple Inc AAPL urged suppliers to move some AirPods and Beats headphone production to India for the first time.
The move marked Apple's gradual diversification from China as it looks to downsize exposure to supply chain disruptions stemming from the country's strict zero-COVID policy and tensions with the U.S.
Apple talked with multiple suppliers about increasing production in India, including crucial acoustics devices, as early as next year, Nikkei Asia reports.
iPhone assembler Foxconn Technology Co, Ltd FXCOF is prepared to make Beats headphones in the country and hopes to produce AirPods there as well eventually.
Luxshare Precision Industry and its affiliates, which already produce AirPods in Vietnam and China, also plan to help Apple make the popular wireless earphones in India.
The report added AirPods were one of the earliest Apple products to be mass produced outside of China, with production shifting to Vietnam in 2019 amid fallout from the U.S.-China trade war.
Apple initially decided to manufacture in India to serve the massive local market. Apple now developed the country as a strategic production base, with exports likely for markets like Europe.
India earmarked $30 billion to strengthen its electronics supply chain further to attract more investment.
The report cited Joey Yen, a tech analyst with IDC, who believes India would emerge as a critical alternative for electronics production outside China thanks to its young engineering talent, a significant workforce, and massive domestic market as a foundation.
Apple iPhone exports from India crossed $1 billion in the five months since April.
At the current rate, outbound shipments of India-made iPhones, mainly to Europe and the Middle East, will likely reach $2.5 billion in the 12 months through March 2023.
Beyond smartphones, India charted out plans to boost the financial incentives for tablet and laptop makers.
Price Action: AAPL shares traded lower by 0.86% at $144.84 in the premarket on the last check Wednesday.

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