Lessening reliance on China, Apple will begin manufacturing AirPods in India in early 2025. Will local production lead to lower prices? Time will tell, according to reports.
Apple is set to begin manufacturing its AirPods in India for the first time starting in early 2025. This move is part of the company’s ongoing strategy to reduce reliance on Chinese production facilities. As reported by Bloomberg, the assembly will be carried out by Foxconn Technology Group, one of Apple’s main suppliers, at a new facility near Hyderabad, Telangana.
According to the report, trial production at the new site has already begun. A full-scale production is anticipated to follow shortly after the official launch of operations in the first quarter of 2025.
As India is becoming a hub for Apple’s manufacturing, including products like the iPhone, this move aims to strengthen Apple’s presence in a rapidly growing market while reducing dependence on a single country for production.
Now the question remains whether the price of the ‘Made-in-India’ AirPods would be cheaper. Several factors impact the pricing of products, such as local taxes, production costs, consumer demand, and Apple’s overall pricing strategy.
According to an analysis by India Today, while manufacturing products locally can help reduce expenses related to import duties and shipping, this may not immediately lead to a significant price drop for consumers. Apple is known for maintaining premium pricing; any reductions would likely be modest.
However, increased local production could improve availability and potentially lower costs over time, particularly if Apple scales up its manufacturing and sees greater demand for AirPods in India.
In July 2024, Apple unexpectedly reduced the prices of the iPhone 15 series ahead of the iPhone 16 launch, deviating from its usual practice of cutting prices after new model releases.
The price drop was partly due to India’s 2024 Union Budget, which reduced the customs duty on mobile phones and chargers to 16.5%, encouraging local production. Following this, Apple cut prices by up to Rs 6,000 on the iPhone 15 Pro series.
While similar reductions for AirPods are possible, they may take time. Over the long term, local production could lead to more competitive pricing and quicker availability for Indian consumers.
