Apple Supplier Starts AirPods Production in India For Export: Report

Jabil, a major supplier for Apple, has commenced the manufacturing of AirPods components in India. According to a Bloomberg report, the manufacturing company's India unit has already started shipping AirPods' plastic bodies or enclosures to Vietnam and China.

Apple Expanding Production In India

Apple has been trying to reduce its dependency on China due to the stringent COVID-19 restrictions and the ever-increasing geopolitical conflicts between the US and China. AirPods are now the second Apple product to be partially made in India, with Jabil's India unit starting production in the country. Prior to this, the Cupertino-based tech giant restricted production to iPhones.

Currently, India accounts for 5 to 7 percent of Apple's production volume. The tech firm is planning to up the numbers, with a goal of manufacturing 25 percent of its iPhones in India. Just last week, Union Minister of Commerce Piyush Goyal hailed Apple as "another success story."

The Indian government has been eager to give a boost to local manufacturing, incentivizing companies to set up production facilities in India. iPhone assembly first commenced in the country back in 2017. The manufacture of iPhones in India has been progressing steadily in the past few years. The iPhone 14 made its mark as the first iPhone to be assembled in India right after launch.

There's word that Foxconn has already begun the trial production of the iPhone 15 series. Apple is reportedly eager to start the production process in India as well.

iPhone Exports From India Double

According to a previous Bloomberg report, Apple exported iPhones worth over $2.5 billion from the period of April to December, which is almost double that of the previous fiscal year. Foxconn and Wistron each are said to have contributed to over $1 billion worth of Apple's shipments.

Apple suppliers have taken advantage of the Indian government's new incentives, which aim to make India an electronics manufacturing hub. It is reported that Foxconn received benefits amounting to an eye-watering $44 million in the first year of India's production-linked incentives program.