Apple to shift production to India

Apple's audio products join the iPhone as the tech giant double downs with production plans in India.

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Apple is reportedly gearing up to manufacture AirPods and Beats headphones in India, as the tech giant doubles down on assembling new iPhones in the country.

Nikkei Asia reported on Wednesday that Apple has asked its suppliers to shift some AirPods and Beats headphone production to India for the first time.

This follows iPhone assembler Foxconn preparing to make Beats headphones in the country, fuelled by plans to produce AirPods there as well, the report mentioned.

“The move is part of Apple’s gradual diversification from China, as it looks to lower the risk of supply chain disruptions stemming from the country’s strict zero-Covid policy and tensions with the US,” it added.

Considering the popularity of the product, AirPods are second to iPhone in terms of shipment volume for Apple.

Currently, AirPods are being manufactured in Vietnam and China, with the majority of Beats headphones being produced in Vietnam.

A boost to India’s thrust on local manufacturing, Apple has kicked off the production of new iPhone 14 in India with plans for the product to be soon shipped to Europe.

This is a first for the tech giant as it narrows down the manufacturing period of new iPhones in India with China, its current key global manufacturing hub.

The locally-assembled iPhone 14 will go on sale in the country in the fourth quarter, as the company bolsters its local manufacturing/assembling plans by spending billions of dollars.

At this pace, industry analysts predict that next year, Apple might manufacture iPhone 15 in India alongside China.

As India goes forth with the local manufacturing of technology products, Apple is likely to move 5 per cent of its new iPhone 14 production to India by the end of this year, and 25 per cent by 2025, according to a JP Morgan analysis.

Buoyed by the ease-of-doing business and friendly local manufacturing policies, Apple’s ‘Make in India’ iPhone shift will potentially account for close to 85 per cent of its total iPhone production for the country this year.


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