Taiwan-based contract manufacturer Foxconn, Apple’s biggest supplier, has reportedly won a contract for AirPods. The deal will see Foxconn, the world’s largest contract manufacturer of electronics, assemble AirPods for the first time ever since the introduction of Apple AirPods, reports Reuters.
According to report, Foxconn plans to invest $200 million into the manufacturing facility in India, citing a source familiar with the development. The plant, as per the report, will be dedicated to the AirPods manufacturing and assembly.
One source says the plant will be located in Telangana, a southern state in India. However, more details remain discreet at the moment. Foxconn already has a facility on the outskirts of Chennai, which opened in 2019, where it assembles iPhones for Apple.
The report notes that Foxconn officials had been debating for months whether the company should take the order for AirPods since they offer a relatively lower profit margin than other Apple products. However, as per the sources, the company decided to take the order to “reinforce engagement” with Apple.
The sources, who happen to have direct knowledge of the deal, said that Apple requested Foxconn to set up production in India. This could be concerning the company’s effort to reduce its reliance on China and move production elsewhere.
Over the last few years, the COVID restrictions in China have caused major disruption in production, especially for Apple, whose significant supply is based out of China. Last year, in November, a huge protest broke down at Foxconn’s Zhengzhou plant, the world’s largest iPhone factory, disrupting the iPhone supply for weeks.
Foxconn itself plans to move the business outside of China, amid the restrictions and rising friction between US and China, to avoid any such situation. On Wednesday, Foxconn announced plans to increase its investments in locations outside of China in response to customer demand and decrease its dependence on China for manufacturing.
According to report, Foxconn plans to invest $200 million into the manufacturing facility in India, citing a source familiar with the development. The plant, as per the report, will be dedicated to the AirPods manufacturing and assembly.
One source says the plant will be located in Telangana, a southern state in India. However, more details remain discreet at the moment. Foxconn already has a facility on the outskirts of Chennai, which opened in 2019, where it assembles iPhones for Apple.
The report notes that Foxconn officials had been debating for months whether the company should take the order for AirPods since they offer a relatively lower profit margin than other Apple products. However, as per the sources, the company decided to take the order to “reinforce engagement” with Apple.
The sources, who happen to have direct knowledge of the deal, said that Apple requested Foxconn to set up production in India. This could be concerning the company’s effort to reduce its reliance on China and move production elsewhere.
Over the last few years, the COVID restrictions in China have caused major disruption in production, especially for Apple, whose significant supply is based out of China. Last year, in November, a huge protest broke down at Foxconn’s Zhengzhou plant, the world’s largest iPhone factory, disrupting the iPhone supply for weeks.
Foxconn itself plans to move the business outside of China, amid the restrictions and rising friction between US and China, to avoid any such situation. On Wednesday, Foxconn announced plans to increase its investments in locations outside of China in response to customer demand and decrease its dependence on China for manufacturing.
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