Apple Asks Suppliers To Move Some Production Of AirPods, Beats To India: Report

In another boost to the government’s ‘Make In India’ plans, tech giant Apple has reportedly asked its suppliers to move some production of AirPods and Beats to India.

The move is part of Apple’s plans to diversify its supply chain and reduce its reliance on China amidst the ongoing US-China hostilities and Covid-19 restrictions in China, Nikkei reported.

According to the report, the US-based smartphone maker has asked several of its suppliers about increasing production in India for its acoustics devices by early 2023.

In response, iPhone assembler Foxconn, one of Apple’s largest manufacturers, is looking to start production of Beats headphones in India, and will eventually also start producing AirPods in the country. 

Another manufacturer Luxshare Precision Industry is also likely to begin the production of wireless audio products in India.

This would be the first time that Apple’s audio products would be manufactured in India. Currently, the US-based company’s iPhones are produced in India by its contract manufacturers – Foxconn, Wistron and Pegatron. 

Last month, Apple began manufacturing its latest iPhone 14 also in India.

In a report, Moody’s Investors Service recently said that the beginning of production of iPhone 14 in India within weeks of its global launch highlights Apple’s growing manufacturing capabilities in the country.

A CyberMedia Research report estimated that India made 3 Mn iPhones in FY22. Besides, Apple exported iPhones worth nearly $1 Bn from the country during April- August 2022 period.

According to brokerage JP Morgan, Apple may manufacture one out of four iPhones in India by 2025 and may move around 5% of iPhone 14 production to India by late 2022.

According to reports, Apple is also looking to manufacture nearly 25% of all its products, including Macbooks, iPad, Apple Watch, outside China by 2025

China has been Apple’s largest manufacturer as the tech giant has streamlined the supply chain over the years in the country. Recently, CyberMedia Research stated that China manufactured 230 Mn Apple smartphones in FY22. Currently, only 5% of other Apple products are made outside China.

Despite the long shot of 2X growth from the previous year, it estimates that it will take nearly a decade for Apple to move just 10% of its production capacity out of China.