Apple has announced that they will soon start producing AirPods in India. AirPods will be Apple's second product category in India after the iPhone. According to the information, the production of AirPods is scheduled to start at Foxconn's Hyderabad plant in India. Apple can start this from April, which will be for export only. Foxconn had in August 2023 approved $400 million, approximately ₹3,500 crore, to set up the factory.
Apple's manufacturing lines in India may have plans to manufacture AirPods. Its major supplier Foxconn is reportedly to start local production of AirPods at the newly built facility in Hyderabad. That would strengthen the iPhone maker's strategy to reduce its dependence on China amid ongoing tariff wars between Beijing and Washington.
According to a report, Foxconn will start producing AirPods truly wireless stereo (TWS) earbuds sometime in April. Last year's Bloomberg report reported that a 2025 deadline was set for the production of AirPods in India. A report also reported that locally manufactured units would be reserved for export. This suggests that initially made in India AirPods will not be sold in India.
The initial AirPods units manufactured in India will be exported by Apple first to markets such as the United States and Europe. The question is whether the price of AirPods will decrease? If we look at the history of the iPhone, the cost reduction seems unlikely. When Apple began assembling iPhone units in India, Apple maintained standard iPhone pricing. After that, the hope of a cheap iPhone also ended.
Apple also does not want incentives to boost sales of its AirPods. Because TWS already dominates the market in 2024 with a 23.1 percent share. The market share of AirPods is almost three times that of its competitor Samsung. Also, the price drop could help Apple take advantage of the lower price range. But Apple has no reason to do that.
Apple has made its strategy to reduce production lines in China by producing AirPods. This will allow Apple to expand its manufacturing base in India . This development comes shortly after US President Donald Trump announced reciprocal tariffs on imported products. India Cellular and Electronics Association reported that about 20 percent of the current imported hearing/wearable devices in India are charged.
Apple has not yet planned to sell locally produced AirPods in India. Which will give customers no way to avoid charges. Also, AirPods manufactured in India can attract fees when sold in the US. Apple's domestic market where it recently announced an investment of $500 billion over the next four years to build manufacturing units.
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