Apple’s contract manufacturer Foxconn has officially begun assembling the latest AirPods models—AirPods 4 and AirPods 4 with Active Noise Cancellation—at its Hyderabad facility, industry executives confirmed. The move is part of a broader manufacturing shift away from China, driven by escalating trade tensions. Foxconn had earlier announced a $400 million investment in this plant in August 2023.
Exports to Begin in April, Domestic Sales to Follow
Initially, the Hyderabad-assembled AirPods will be exported to major markets like the United States and Europe, with domestic availability expected at a later stage. The first shipments are set to roll out in limited quantities in April, with production expected to scale up significantly over the next three to four months.
US Tariffs Drive Apple’s Manufacturing Diversification
Apple’s decision to expand production in India comes amid increasing trade restrictions between the US and China. The US government recently imposed an additional 10% tariff on audio products imported from China, doubling the previous duty. The cost hike has accelerated Apple’s efforts to diversify its supply chain and reduce reliance on Chinese manufacturing hubs.
Industry sources suggest Apple aims to shift at least 50% of its global export demand away from China in the coming years, with India expected to absorb a substantial portion of this transition.
Apple’s Strong Market Presence and India’s Growing Role
Apple continues to dominate the global market for truly wireless earbuds, with AirPods leading the segment in 2024. According to Canalys data, the company shipped 81.8 million units last year, securing an 18% market share. The United States remains Apple’s most crucial market for AirPods.
Beyond AirPods, Apple’s investment in India’s production ecosystem has been steadily increasing. In 2024 alone, the company exported iPhones worth $12.8 billion from India, contributing to the country’s total iPhone production of $17.5 billion.
Industry Calls for Policy Support
As India strengthens its position in the global electronics manufacturing landscape, industry groups such as the India Cellular and Electronics Association (ICEA) have been advocating for policy changes to boost local production.
Currently, India imposes a 20% tariff on finished wearable electronics imports as part of its ‘Make in India’ initiative. Industry leaders have urged the government to reconsider these tariffs and introduce a production-linked incentive (PLI) scheme to support manufacturers amid shifting trade dynamics.
With Apple ramping up its production footprint in India, the country is poised to become a critical player in the global supply chain for premium consumer electronics.
