Foxconn, the biggest contract electronics producer in the world and the company that assembles about 70% of all iPhones, has been tasked with making Earbuds for Apple Inc. Two individuals with firsthand knowledge of the situation claim that Foxconn will also construct a new factory in India to manufacture wireless earphones. This agreement shows Foxconn’s attempts to diversify production away from China and makes it the company’s first time serving as an AirPod supplier. Currently, a number of Chinese manufacturers produce AirPods, but Apple will be able to increase its supply pool thanks to the new agreement with Foxconn. The AirPod order’s precise cost has not been made public. According to one source, Foxconn intends to spend more than $200 million on the new Telangana AirPod plant in southern India.
Foxconn debated whether to make AirPods privately for several months before making the choice. The relatively lower profit margins for manufacturing the device were one of the significant issues. Foxconn eventually chose to move forward with the agreement though in order to “reinforce engagement” with Apple. This recent development fits into this trend. India has developed into a desirable manufacturing hub thanks to its inexpensive labor and sizable home market. The Indian government has also been promoting the nation as a location for international investment and providing incentives to draw businesses.
Foxconn already has a sizable footprint in India, where it gathers electronics for clients like Apple and others, including the iPhone. The business intends to increase the production of laptops and tablets at its local factories. It is anticipated that the new Telangana AirPod plant will boost employment prospects and the Indian economy. To sum up, Foxconn’s recent agreement to manufacture AirPods for Apple and to construct a plant in India shows the company’s attempts to diversify its production away from China. This development fits into a larger pattern of businesses attempting to reduce the risks brought on by depending solely on one source of supply. The action shows the government’s initiatives to draw foreign investment and India’s growing appeal as a manufacturing hub.
