Apple Inc. is asking its suppliers to move some AirPods and Beats headphone production to India for the first time, Nikkei reported on Wednesday in what could be another win for New Delhi for local manufacturing.
The report quoted sources as saying that Apple iPhone assembler Foxconn is preparing to make Beats headphones in India and is expected to eventually produce AirPods in the country as well.
According to the report, Luxshare Precision Industries, a Chinese supplier to the iPhone maker, and its units are also planning to help Apple manufacture AirPods in India.
However, Luxshare is focusing more on its Vietnamese AirPods operations right now and may be slower than its competitors in launching meaningful production of Apple products in India, the Nikkei newspaper said.
Apple did not immediately respond to a Reuters request for comment.
The tech giant is shifting some areas of iPhone production from China to other markets, including India, where it began manufacturing the iPhone 13 earlier this year, and also plans to assemble the iPad tablet. The company last week announced its plans to manufacture the latest iPhone 14 in India.
A Bloomberg News report on Tuesday said iPhone exports from India crossed $1 billion in five months from April and are expected to reach $2.5 billion in 12 months by March 2023.
The Nikkei report said Apple’s latest move is part of a gradual diversification out of China. India and other countries such as Mexico and Vietnam are becoming increasingly critical of contract manufacturers supplying to US brands amid COVID-related lockdowns in China and rising tensions between Washington and Beijing. Reuters
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