Apple Inc. is making a strategic move to diversify its manufacturing operations by beginning the production of its AirPods wireless earphones in India early next year. This decision marks a significant milestone in Apple's ongoing efforts to reduce its reliance on China for manufacturing. A unit of Foxconn Technology Group, a key supplier for Apple, will spearhead this initiative at a new factory near Hyderabad in Telangana state. The factory has already commenced trial production, with plans to ramp up manufacturing swiftly once full-scale production begins. This shift is part of a broader strategy by Apple to expand its operations in India, which already includes iPhone assembly.
The decision to move AirPods production to India aligns with a growing trend among U.S. companies to diversify their supply chains beyond China, a move accelerated by the disruptions caused by the pandemic. Additionally, geopolitical factors, such as the re-election of Donald Trump, could further influence this shift. Apple's expansion in India is not limited to manufacturing; the company has also opened its first two retail stores in Delhi and Mumbai, with plans for additional stores in other major cities. This expansion has been financially rewarding, with the two stores generating approximately INR800 crore ($94.3 million) in revenue in their first year.
Apple's stock closed at $248.13 on December 13th, with a slight increase of 0.07% from the previous day's close of $247.96. However, after-market trading saw a minor decline of 0.18%, bringing the price to $247.69.