Strengthening Economic Ties
Building on its multi-billion-dollar iPhone manufacturing initiatives in India, Apple is further deepening its commitment to the region by beginning the local production of AirPods targeted primarily for the export market. This move comes despite the absence of production-linked incentives (PLI) for hearing devices, a benefit that the smartphone sector currently enjoys. Since starting iPhone production in 2021, Apple has significantly increased its manufacturing output in India, exporting iPhones valued at approximately $14 billion in 2024 alone, which accounts for 14% of its global production.
Strategic Production Rollout
The manufacturing process for AirPods will kick off with the production of casings at the Jabil facility in Pune, followed by full-scale assembly at Foxconn’s new plant in Telangana. This expansion is described by The Times of India as a “mega operation” with a primary focus on serving the global market, reflecting the larger demand for AirPods outside of India.
Collaborative Manufacturing Efforts and Future Plans
Apple’s strategy to ramp up production capacity in India includes collaboration with major contract manufacturers such as Foxconn, Pegatron, and the Tata Group, the latter of which has recently taken over operations from Wistron’s Indian unit. Starting next year, AirPods manufactured in India will also be available in the local market. The emphasis on export operations underscores Apple’s intent to establish a significant manufacturing presence outside of China, further diversifying its global production footprint.
The Indian government has expressed enthusiasm over Apple’s expansion plans, which contribute substantially to the nation’s export figures. Although there are no immediate plans for MacBook production in India, the government continues to promote laptop manufacturing under the existing PLI scheme. For Apple, India is increasingly becoming a reliable base for rolling out its globally sought-after products, with many of its key suppliers now firmly established in the country.
