Foxconn Hyderabad factory to make AirPods; Will AirPods be cheaper in India

Apple could start manufacturing AirPods true wireless earphones at Foxconn's factory in Hyderabad. According to PTI, citing industry sources, Apple is expected to start production in December 2024. The company already assembles non-Pro iPhones in India with partners including Foxconn, Wistron in Bengaluru and Pegatron in Tamil Nadu. The company may expand AirPods production to other factories later, as was the case with iPhones in India.

The report, citing a source, adds: "Foxconn Hyderabad factory will make AirPods. The factory is expected to begin mass production by December." The information was confirmed by another source familiar with the development. It's unclear if Apple will make the Pro (and more expensive) variant of AirPods in India. The company and Foxconn have yet to confirm the development.

The report indicates Apple's growing attention towards India. The company is already considering options to expand its assembly line outside of China. A June report suggested the Cupertino-based tech giant planned to increase iPhone production in India by 18 per cent over the next two years, up from 7 per cent currently. The shift in focus towards India also stems from the incentives provided by the government to boost local manufacturing of electronics. Furthermore, a change in production also helps brands to expand their supply chain portfolio. In addition to production units, Apple has opened two new physical retail stores in India (Delhi and Mumbai). The company will reportedly open new stores in the country by 2025.

On the other hand, India continues to record high iPhone adoption in the country. During the June quarter results, Apple CEO Tim Cook said he was "pleased" with the growth of the iPhone in India. Cook added that the company achieved a "record quarterly revenue in India." According to IDC data, Apple posted 61% year-over-year growth in the June quarter. Its share of the phone market also increased to 5.5 per cent from 3.3 per cent in the country.

Will AirPods be cheaper in India?

While local manufacturing can bring prices down, in the case of Apple, things are a bit tricky. First, Apple assembles iPhones in India, and the company continues to pay heavy tariffs on exports of several key parts. Despite producing iPhones in India, Apple's smartphones remain in the premium category (Rs 50K and above). Similarly, with AirPods, a price drop remains unlikely. The second-generation AirPods are priced at Rs 14,900 in India. The new AirPods 3rd-Gen and AirPods Pro 2nd-Gen are priced at Rs 20,900 and Rs 26,900, respectively.