For the US and Europe exports, Apple to start AirPods production at Foxconn’s Hyderabad plant in April, amid US tariff concerns and a $500 billion US investment.
Apple is set to begin producing AirPods at the Foxconn plant in Hyderabad from April, focussing initially on exports. This marks the second product category Apple will manufacture in India, following iPhones. According to the Economic Times, the production will be geared solely towards export markets in the US and Europe.
In August 2023, Foxconn approved an investment of $400 million (around ₹35 billion) to establish the facility in Hyderabad. The decision to begin AirPods production in India is particularly notable amidst concerns that Apple might scale back operations in the country due to potential tariffs.
The US government, under former President Donald Trump, proposed reciprocal tariffs that could impact production in India. Furthermore, Apple’s recent announcement of a $500 billion investment in manufacturing in the US over the next four years has raised questions about its production strategy in other countries as well.
India currently imposes a 20 per cent import duty on hearables and wearables, while the US does not. The India Cellular and Electronics Association (ICEA) has suggested that India could benefit by waiving the import duty on such products from the US, as the proposed tariffs are set to take effect from April 2. However, Apple and Foxconn have not responded to inquiries about the move.
Apple has been a dominant player in the True Wireless Stereo (TWS) market. In 2024, the company held a 23.1 per cent market share, significantly outperforming its closest competitor, Samsung, which had around 8.5 per cent, according to Canalys.
