Apple Inc Expands Manufacturing to India

Apple Inc (NASDAQ:AAPL) plans to expand its manufacturing base by starting production of its popular AirPods wireless earphones in India early next year, according to Bloomberg News. This move indicates a significant shift for Apple as it aims to reduce dependence on Chinese manufacturing.

The production will be carried out by a unit of Foxconn Technology Group at a new facility near Hyderabad, Telangana, beginning in the first quarter of 2025. Sources familiar with the matter indicated that trial production runs are currently taking place at the factory, with full-scale manufacturing expected to ramp up quickly following initial production.

This initiative marks AirPods as the second major Apple product to be assembled in India, following the iPhone. Apple's expansion is supported by factors such as subsidies from Prime Minister Narendra Modi's government, access to a skilled local workforce, and India's improving technological infrastructure.

India is becoming increasingly vital to Apple's strategy to diversify production and mitigate geopolitical risks related to operations in China. Ongoing tensions between Washington and Beijing have prompted Apple and other companies to seek alternative manufacturing locations. The potential re-election of Donald Trump in the U.S. could further accelerate this shift away from China.

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