Apple may begin manufacturing AirPods true wireless earbuds at Foxconn's Hyderabad factory. According to PTI, citing industry sources, Apple is expected to begin production by December 2024. The company already assembles non-Pro iPhones in India with partners, including Foxconn, Wistron in Bengaluru, and Pegatron in Tamil Nadu. The company may expand AirPods production to other factories later, as was the case with iPhones in India.
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The report, quoting a source, adds, "Foxconn Hyderabad factory will make AirPods. The factory is expected to begin mass production by December." The information was confirmed by another source privy to the development. It remains unclear whether Apple will manufacture the Pro (and more expensive) variant of AirPods in India. The company and Foxconn have not confirmed the development yet.
The report indicates Apple's growing attention towards India. The company is already looking at options to expand its assembly line outside of China. A report in June suggested that the Cupertino-based tech giant was planning to boost iPhone production in India by 18 per cent in the next two years, up from the current 7 per cent. The shift in focus towards India also stems from incentives provided by the government to boost local manufacturing of electronics.
Additionally, a shift in production also helps brands to expand their supply chain portfolio.
Apart from production units, Apple has also opened two new physical retail stores in India (Delhi and Mumbai). The company will reportedly open new stores in the country by 2025.
On the other hand, India continues to register a high iPhone adoption in the country. During the June quarter results, Apple CEO Tim Cook said he was "pleased" with iPhone growth in India. Cook added that the company hit a "quarterly revenue record in India." According to IDC data, Apple registered 61 per cent year-on-year growth in the June quarter. Its phone market share also rose to 5.5 per cent from 3.3 per cent in the country.
Will AirPods become cheaper in India?
While local manufacturing can reduce the pricing, in the case of Apple, things are slightly tricky. Firstly, Apple assembles iPhones in India and the company continues to pay heavy duties on exports of several key parts. Despite producing iPhones in India, Apple smartphones remain in the premium category (Rs 50K and above). Similarly, with AirPods, a drop in price remains unlikely. The 2nd-Gen AirPods are priced at Rs 14,900 in India. The newer AirPods 3rd-Gen and AirPods Pro 2nd-Gen are priced at Rs 20,900 and Rs 26,900, respectively.
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