Apple to Begin AirPods Production for Exports at Foxconn’s Hyderabad Plant in April
Hyderabad: Apple is set to commence production of AirPods for exports at Foxconn’s Hyderabad plant starting in April, marking another significant step in the company’s expansion in India’s manufacturing sector.
Foxconn, Apple’s key manufacturing partner, had approved a $400 million (approximately ₹3,500 crore) investment in August 2023 to establish the Hyderabad facility. The plant, which is now gearing up for production, will make AirPods the second Apple product manufactured in India, following the iPhone.
AirPods Production Exclusively for Exports
According to industry sources, the initial production of AirPods in India will be exclusively for exports. “Production of AirPods is set to begin at Foxconn’s Hyderabad facility from April, but as of now, it will be only for exports,” a source told PTI.
This move aligns with Apple’s strategy to diversify its supply chain and reduce reliance on China. However, there is growing speculation about Apple’s future manufacturing plans in India, especially in light of evolving trade policies between the U.S. and India.
Impact of U.S. Tariffs on Apple’s India Plans
The decision to produce AirPods in India comes at a time when trade tensions between the U.S. and India are rising. The Trump administration has announced new reciprocal tariffs on multiple countries, including India, effective April 2, 2025. This has raised concerns about Apple’s long-term commitment to Indian manufacturing.
Adding to the uncertainty, Apple recently announced a $500 billion investment in the U.S. over the next four years to boost manufacturing within the country. Some analysts believe this move could impact Apple’s expansion in India, as the company reassesses its global production strategies.
India’s Tariff Policies and Industry Response
Currently, India imposes a 20% import duty on hearables and wearables, while the U.S. has zero import duties on these products. The India Cellular and Electronics Association (ICEA) has recommended that India waive import duties on smartphones, hearables, and wearables imported from the U.S. to maintain a competitive edge in global manufacturing.
Industry experts suggest that if India reduces these tariffs, it could strengthen the country’s position as a global electronics manufacturing hub and encourage companies like Apple to expand their production for the domestic market as well.
Apple’s Growing Presence in India
Apple has been steadily increasing its manufacturing footprint in India. The company currently produces iPhones through Foxconn, Pegatron, and Wistron (now owned by Tata Electronics) in Tamil Nadu and Karnataka. With the Hyderabad plant now set to manufacture AirPods, Apple is further deepening its engagement with India’s electronics sector.
While AirPods production will initially be limited to exports, experts believe that if policy conditions become favorable, Apple may eventually expand production for the Indian market as well. The development is being closely watched, as it could shape Apple’s long-term investment strategy in India amid shifting global trade dynamics.
