With AirPods, Apple beats headphone production to India for first time: Report
Apple is reportedly gearing up to manufacture AirPods and Beats headphones in India, as the tech giant doubles down on assembling new iPhones in the country. According to the source, iPhone assembler Foxconn is planning to manufacture Beats headphones in the nation, as well as AirPods.
Apple has asked its suppliers to move some AirPods and Beats headphone production to India for the first time, reported Nikkei Asia on Wednesday. According to the source, iPhone assembler Foxconn is planning to manufacture Beats headphones in the nation, as well as AirPods.
"The decision is part of Apple's steady diversification away from China, as the company seeks to reduce the risk of supply chain disruptions caused by the country's tough zero-Covid policy and tensions with the US," the company noted.
In terms of shipment volume, Apple's AirPods are second only to the iPhone. AirPods are now manufactured in Vietnam and China, with Vietnam producing the bulk of Beats headphones. The 'Made in India' iPhone 14 will also be available in Europe soon.
Apple has begun manufacture of the new iPhone 14 in India, a first for the tech giant as it reduces the manufacturing duration of new iPhones in India in comparison to China, which is its primary global manufacturing base. The locally made iPhone 14 will be available in the nation in the fourth quarter, as the business invests billions of dollars in local production and assembly.
At this rate, industry observers believe that Apple will produce the iPhone 15 in India and China at the same time next year. According to a JP Morgan research, as India doubles down on local manufacture of technological items, Apple is anticipated to shift 5% of its new iPhone 14 production to India by the end of this year, and 25% by 2025. With the ease of doing business and favourable local manufacturing rules, Apple's 'Make in India' iPhones might account for close to 85 percent of the country's total iPhone output this year.