Apple (AAPL.US) to assemble AirPods in India by early 2025, diversifying supply chain

Apple (AAPL.US) plans to take a historic step in early 2020 by manufacturing its iconic AirPods wireless earbuds in India, marking a significant milestone in the iPhone maker's push for market diversification and reducing its reliance on China. According to anonymous sources, a subsidiary of Foxconn Technology Group is expected to officially start assembling AirPods in the first quarter of next year at a new factory located near Hyderabad in the Indian state of Telangana. The factory, which is already in the trial production phase of AirPods, is planning to ramp up production after its official launch. With this move, AirPods will become the second major Apple product after the iPhone to be assembled in India. Apple's decision to expand production in India is largely due to the subsidies offered by Indian Prime Minister Narendra Modi, the country's increasingly skilled workforce and the significant improvement in technological capabilities. India has become a core component of Apple's efforts to adjust its supply chain amid the global political and economic landscape. If Donald Trump is re-elected as US president, it may further accelerate the process of Apple and other multinational companies shifting their production to other regions. As the world's largest manufacturer of true wireless stereo devices, Apple excels in this field. According to research firm Canalys, Apple shipped 16.8 million true wireless stereo devices in the second quarter of this year, accounting for 22% of the market share. Meanwhile, India's position in Apple's global supply chain is also on the rise. In the six months to September, India's exports of Apple iPhones grew by a third to nearly $6 billion. Notably, last year, Apple's Indian subsidiary began supplying AirPods shells (i.e. plastic bodies) to China and Vietnam, but the assembly of these wireless earbuds is still mainly concentrated in China and Vietnam. It is expected that most of the AirPods assembled in India next year will be shipped to other international markets. Representatives of Foxconn and Apple in India did not respond to the information.