Apple considers moving ‘some’ AirPods, Beats production to India: Report

Continuing on its efforts to diversify the supply chain away from China, iPhone maker Apple is reportedly asking its suppliers and contract manufacturers to shift the assembling of “some” of its AirPods and Beats-branded audio products to India. The move comes shortly after the Taiwan-headquartered Pegatron followed fellow manufacturers Foxconn and Wistron Corp to set-up its first factory near Chennai —from where it is expected to assemble Apple’s iPhones, among other mobile phones. 

According to the Nikkei report from earlier today, Foxconn is seemingly prepared to start assembly of Beats-branded earphones in India — and may eventually shift to making AirPods as well. Subsidiaries of Shenzhen-based contract manufacturer Luxshare Precision Industry are also expected to contribute to Apple’s India-made AirPods. 

This marks a potential expansion of India’s contribution to the Apple supply chain, which for the first time started making the latest generation iPhones within weeks of the products being unveiled globally. According to industry estimates, 70% of all iPhones sold in India are already manufactured domestically, while India’s share of exports for iPhones has also grown. 

On October 4, a Bloomberg analysis report said that iPhone exports from India have surpassed $1 billion between April and August, a five-month period. This figure is expected to hit $2.5 billion by the end of FY23, while Apple’s market share in India also continues to increase. 

On February 11, market research firm International Data Corporation (IDC) reported a record year for Apple in India — which shipped nearly 5 million iPhones in India and captured a 4% market share in the country’s robust smartphone market for the very first time. The ranking also saw the company rank seventh in the list of smartphone brands in India. 

Earlier this month, analysts told Mint that Apple could surpass its record 2021 shipments this year, buoyed by a strong festive period. Navkendar Singh, associate vice-president of devices research at IDC India said that Apple could ship up to 6 million iPhones in 2022. 

India, meanwhile, also offers a strong market demand for ‘hearable’ devices as well — such as AirPods or Beats’ Powerbeats. An August 17 report by IDC pegged the hearables category at a growth pace of 87.6% YoY — shipping 17.3 million true wireless earphones in the June quarter.