Apple AirPods Production Started in Hyderabad, iPhones to Follow

Foxconn, the Taiwanese electronics manufacturing giant, has started producing Apple AirPods at its new facility in Hyderabad. These units are being made exclusively for export. This move is part of Apple’s broader strategy to expand manufacturing in India and reduce reliance on China amid rising trade tensions and increasing tariffs on Chinese goods by the United States.

Sources have confirmed that Foxconn’s larger plant in Bengaluru, built with an investment of $2.8 billion (around Rs. 25,000 crore), will soon begin operations to manufacture iPhones, including upcoming models. This facility will be Foxconn’s second-largest plant outside China. It is expected to reach a peak capacity of 20 million units per year.

The company has already started trial production of iPhone 17 series, Moneycontrol report quoting sources said adding that Tata Electronics is also producing components like casings for Apple. Tata’s Hosur facility has also started assembling older-generation iPhones and shipments are expected to begin soon. Tata has emerged as Apple’s second major supplier in India after acquiring Pegatron and Wistron’s manufacturing units.

Apple is looking forward to move its production of over 60 million iPhones per year to India by next year, meeting the entire US demand from Indian factories. This shift is driven by concerns over high tariffs on Chinese goods and the need for a stable and diversified supply chain.

iPhones worth $2 billion were exported from India to the US in March. It is a record for both Tata Electronics as well as Foxconn.

According to IDC India’s Navkendar Singh, Apple’s steps are essential for reducing dependence on China and boosting exports from India to key markets like the US. With increasing production capacity, India is quickly becoming a vital hub in Apple’s global manufacturing strategy.

Source: Financial Express