In a significant move to diversify its manufacturing base beyond China, Apple Inc. is accelerating its expansion in India. The tech giant’s primary supplier, Foxconn, has commenced production of AirPods at a newly established facility near Hyderabad, Telangana, with plans to begin exports in April 2025 . This development marks AirPods as the second major Apple product to be manufactured in India, following the iPhone.
Foxconn has invested approximately $400 million to set up the Hyderabad plant, reflecting Apple’s commitment to strengthening its manufacturing footprint in India . The facility is expected to create around 13,000 jobs in its initial phase, contributing significantly to the local economy . The initial production will focus on two base models—AirPods 4 and AirPods 4 with Active Noise Cancellation—primarily for export to markets such as the United States and Europe .
This strategic shift aligns with Apple’s broader efforts to reduce its reliance on Chinese manufacturing amid escalating geopolitical tensions and supply chain disruptions. The U.S. government’s imposition of a 145% tariff on certain Chinese goods has further incentivized Apple to explore alternative manufacturing hubs . India’s favorable trade policies and production-linked incentive schemes have made it an attractive destination for Apple’s manufacturing diversification.
In addition to the Hyderabad facility, Foxconn is expanding its operations in India with a new plant in Bengaluru, Karnataka, set to commence iPhone production soon. This facility, established with an investment of $2.8 billion, is projected to have a peak capacity of 20 million units per annum . Apple aims to shift the production of over 60 million iPhones annually to Indian factories by the end of 2026, targeting the U.S. market demand .
Apple’s expansion in India is not without challenges. Reports indicate that China is imposing restrictions on the movement of employees and specialized equipment essential for high-tech manufacturing to India and Southeast Asia, potentially hindering Apple’s efforts to diversify its production bases . Despite these hurdles, Apple’s manufacturing partners in India are making significant strides. Tata Electronics has acquired a 60% stake in Pegatron Technology India, which manages an iPhone plant near Chennai, further solidifying India’s role in Apple’s global supply chain .
The Indian government’s support has been instrumental in facilitating Apple’s manufacturing expansion. Financial incentives and a favorable policy environment have attracted major investments from Apple’s suppliers. Foxconn’s commitment to invest $1.5 billion in India to expand iPhone production capabilities underscores the growing importance of India in Apple’s manufacturing strategy .
As Apple continues to deepen its manufacturing ties with India, the country’s role in the global electronics supply chain is poised to grow. The expansion of production facilities for both iPhones and AirPods not only diversifies Apple’s manufacturing base but also contributes to India’s economic development and employment generation.
