In a first, Apple to make AirPods, Beats in India
What's the story
Apple continues its policy of diversifying the manufacturing base, and again, India seems to emerge as the beneficiary of this.
The Cupertino-based company is asking its suppliers to move some of the AirPods and Beats production to India, according to Nikkei Asia.
The tech giant's decision is a huge boost for India's desire to become a manufacturing hub in the near future.
Context
Why does this story matter?
Get ready to own 'made in India' Beats headphones and AirPods. It seems that Apple is unsure of China as a manufacturing partner.
Disruptions caused by COVID lockdowns and growing tensions with the US have changed the optics. China is no longer considered the only and primary choice to build a manufacturing facility.
Countries like India are here to make the most of it.
Production plans
Manufacturing of AirPods and Beats may begin next year
According to Nikkei Asia, Apple will manufacture AirPods and Beats in India for the first time.
The company has been talking to various suppliers about manufacturing acoustic devices in India as early as next year.
Apple's decision to shift manufacturing to India is part of its policy of gradual diversification, as it aims to reduce supply chain disruptions and lower dependency on China.
Partner
Foxconn will manufacture Beats headphones in India
Foxconn, the world's biggest contract manufacturer of electronics, has been Apple's chief partner in India. The company has stepped in to help Apple in its new aspirations as well.
It will manufacture Beats headphones in the country and hopes to produce AirPods eventually.
Foxconn has been present in India since 2015. It has campuses in Andhra Pradesh and Tamil Nadu.
Luxshare
Luxshare will be slow to make AirPods in India
Luxshare Precision Industries and affiliates have shown interest in manufacturing AirPods in India. The company already produces the same in Vietnam.
According to sources, Luxshare is more focused on its Vietnam business at the moment. This mean, it might be slower in starting production of AirPods in India than competitors.
Vietnam has been producing AirPods since 2019.
New India
India is slowly growing as an electronics manufacturing hub
Apple's decision to begin the production of AirPods and Beats in India is a win for the Indian government.
The government has been wooing international players to set up manufacturing facilities in the country. Apple has already started manufacturing the new iPhone 14 in the country.
The addition of AirPods and Beats certainly enhances the equation.