foxconnthe largest supplier ofApplewill manufacture AirPods in a factory in India, while the apple brand is increasingly seeking to relocate its production to the South Asian country at the expense of China.
A first for Foxconn
For some time, Foxconn, which produces about 70% of iPhones, intensify efforts to expand its manufacturing activity in India. The company recently announced an investment of 700 million dollars in the state of Karnataka to deploy part of its production there, and also conducted a major lobbying campaign alongside Apple in the country in order to obtain working conditions more favorable to its factory production methods.
From now on, the Taiwanese giant has won an order to manufacture AirPodsand plans to invest more than $200 million in a new factory in the Indian state of Telanganain the south of the country, to carry out its production there, reports Reuters. This is the first time that Foxconn will design the Apple brand’s wireless earphoneswhich is currently made by Chinese manufacturers such as Luxshare.
While Foxconn debated internally whether producing the AirPods was financially beneficial to it, the company ultimately concluded that it would allow it to strengthen its link with Applewith a view to obtaining new contracts for the design of new products from the American giant.
Apple wants to produce more in India
The news agency states thatApple would have specifically asked Foxconn to produce its headphones in India. This corroborates reports that the Cupertino company is increasingly encouraging its suppliers to relocate from China, where it has a highly developed and established production ecosystem. In addition to wanting to depend less on the country because of the impact of Covid-19 on the international supply chain, Apple wants to avoid the possible repercussions of the trade war in which the United States and the Middle Kingdom clash.
The company particularly favors India, and also plans to produce 25% of its iPhones by 2025. For its part, Foxconn announced on Wednesday March 15 that its investments outside of China were to intensify to meet customer demand and reduce its dependence on the country.