Apple To Produce Beats Headphones In India, AirPods Might Follow Suit

Apple Inc. is moving production of its Beats headphones to India. Even the Apple AirPods could follow suit. Although considered a huge boost to the "Make in India" initiative by the Indian government, Apple isn't shifting the entire production of its peripherals to India. Moreover, not every manufacturer might be keen to explore the possibility.

Foxconn, which already has a manufacturing unit to produce the latest Apple iPhone models in India, has reportedly been tasked to make Beats headphones in the country. Apple is also considering moving some of the production of AirPods to India and has asked Luxshare Precision Industry to explore the possibility.

Incidentally, Luxshare Precision Industry and its affiliates produce AirPods in Vietnam and China. Although the company has a subsidiary in India, it is unclear if Luxshare already has an Indian partner to set up a joint venture. It seems the company may have to scout for a suitable manufacturing location and a reliable Indian company. As Luxshare actively produces AirPods outside China, the company may not be highly enthusiastic about Apple's decision to add yet another manufacturing hub in India.

India could be an attractive manufacturing hub for the world, but foreign businesses may need protection

As part of Apple's gradual diversification from China, the company is actively seeking out destinations in other parts of the world to set up production facilities. The pandemic may have thrown a large spanner in the global supply chain and distribution networks. But China's "Zero COVID" policy truly pushed American companies to look at reliable manufacturing hubs outside the country. Attempting to attract foreign businesses, the Indian government has been actively rolling out the proverbial red carpet.

We had recently reported, Taiwan-based Wistron Corp is in talks with the Tata group to assemble iPhones in India. If the merger is successful, Tata would be the first Indian brand to manufacture and assemble iPhones.

India may have a large labor pool, and the country is actively involved in upskilling the youth, but it has several challenges to overcome. After all, Wistron's talks with Tata are believed to be a response to riots at the former's Indian iPhone plants which completely shut down the assembly lines for an extended duration.