Apple to begin Airpods production for exports at Foxconn's Hyderabad plant

Apple to begin Airpods production for exports at Foxconn's Hyderabad plant

  • 17.03.2025 04:37
  • thehindu.com
  • Keywords: Apple, Foxconn

Apple will begin AirPods production at Foxconn's Hyderabad plant in India for exports starting April, following iPhone manufacturing. This move comes amid US tariff concerns and aims to leverage India's export capabilities despite potential trade barriers.

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Estimated market influence

Apple

Apple

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Analyst rating: Buy

Apple is planning to start production of Airpods in India, which could expand their market presence and increase revenue.

Foxconn

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Analyst rating: N/A

Foxconn is facilitating the production with a significant investment, which may boost their manufacturing capabilities and partnerships.

Context

Analysis of Apple's AirPods Production in India

Key Facts and Data Points

  • Product Category: AirPods will be the second product category (after iPhones) manufactured by Apple in India.
  • Production Start Date: April 2025, initially for exports only.
  • Manufacturing Plant: Foxconn’s Hyderabad facility.
  • Investment: Foxconn approved $400 million (~₹3,500 crore) to set up the factory in August 2023.

Market Share and Industry Insights

  • Apple leads the global TWS (True Wireless Stereo) market with a 23.1% market share in 2024.
  • Samsung follows with an estimated 8.5% market share, according to Canalys data.

Strategic Considerations

  • The move comes amid speculation of potential U.S. tariffs on Indian imports, following the Trump administration’s proposed reciprocal tariffs from April 2, 2025.
  • India imposes a 20% import duty on hearables and wearables, while the U.S. has no such duty.

Competitive Dynamics

  • Apple’s decision to manufacture AirPods in India could reduce reliance on China and mitigate risks of U.S.-India trade tensions.
  • The Indian government’s proposed waiver of import duties on hearables and wearables could benefit domestic manufacturing and exports.

Long-Term Effects and Regulatory Impacts

  • This production shift aligns with Apple’s broader strategy to diversify its global supply chain.
  • It may also influence other tech companies to follow suit, increasing India’s role as a manufacturing hub for electronics.

Conclusion

Apple’s decision to produce AirPods in India underscores the company’s strategic response to geopolitical and trade dynamics. While initially focused on exports, this move could have long-term implications for India’s electronics manufacturing sector and its position in global supply chains.