Report says Apple is planning to move some AirPods production to India
Foxconn is planning to make Apple AirPods in India
The report says that Foxconn has been making preparations to assemble Beats headphones in its Indian facility and is planning on producing AirPods in the same plant. Chinese company Luxshare Precision Industry, an important member of Apple’s supply chain, is also planning to produce AirPods in India. The Nikkei report states that Luxshare might not be ready to immediately produce AirPods in India since it is focusing on its factory in Vietnam which turns out AirPods.
Apple is looking at moving some AirPods production to China
India is the second largest smartphone market in the world after China but before the United States. However, its position as a developing country makes pricing extremely important. Apple originally started making older models in India to prevent it from tacking on an import tax that India charges on iPhone models imported from China. Building more iPhones domestically also syncs with Indian Prime Minister Narendra Modi’s “Make in India” campaign.
Other options for Apple besides India are Vietnam and Mexico
It is to Apple’s advantage to make any manufacturing moves out of China piecemeal just in case there are some problems. What are the kinds of problems that could develop? Apple might have a harder time sourcing parts and components from a new supply chain. It might find it harder to find properly trained assembly line workers and keep them showing up at the factories every working day. And there are other things to be concerned with including the ability to have products quickly packaged and shipped for distribution worldwide.