Foxconn, Apple’s main manufacturing ally, is poised to increase the monthly output of new AirPods at its plant in Hyderabad, India, by a factor of two. This action is part of a larger strategy aimed at bolstering production capabilities and broadening manufacturing sites beyond China.
### Increasing Production Capacity
At present, Foxconn’s Hyderabad plant targets a production capacity of 100,000 AirPods units each month. The firm intends to elevate this capacity to 200,000 units by revamping five current production lines assigned to the new AirPods models. This growth will also see the labor force expand from roughly 2,000 employees to about 5,000. The financial investment in this venture totals ₹48 billion, with ₹30 billion already earmarked for the undertaking. Some of the fresh equipment will be repurposed from Foxconn’s operations in Vietnam, reflecting a strategic method to resource management.
### Ongoing Diversification Beyond China
Apple’s initiatives to broaden its manufacturing foundation are well-established. The recent relocation of Apple Vision Pro production to Vietnam exemplifies this approach. The boosted AirPods production from the Hyderabad facility will serve markets in India, the U.S., and Europe. Importantly, electronics manufactured in India enjoy tariff exemptions in the United States, and Apple has already built a considerable manufacturing footprint in the nation, producing the majority of its U.S. iPhones there.
Alongside expanding operations in India, Apple is also making substantial investments in U.S. manufacturing. In August, the company pledged to inject $600 billion over the next four years as a part of its American Manufacturing Program, which aims to shift production of cover glass for the iPhone and Apple Watch to the United States, among various other projects. This transition illustrates Apple’s wider strategy to diminish reliance on Chinese manufacturing by transferring production to nations such as India, Vietnam, Malaysia, and Thailand.
In conclusion, Foxconn’s growth in India marks a pivotal advancement in Apple’s continuous endeavors to diversify its manufacturing abilities and lessen reliance on China, while simultaneously addressing global market needs.
