Big Boost to Make in India! Apple Supplier Foxconn Said to Produce AirPods in Hyderabad

Apple may have plans to add AirPods to its manufacturing lines in India. Its prominent supplier Foxconn will reportedly begin the local production of AirPods at the newly built facility in Hyderabad, bolstering the iPhone maker’s strategy to minimise its reliance on China amid the ongoing tariff wars between Beijing and Washington.

According to a report by the Press Trust of India (PTI), Foxconn is slated to begin production of AirPods truly wireless stereo (TWS) earbuds sometime in April. It corroborates Bloomberg's report last year that suggested a 2025 timeline for AirPods production in India. However, the locally manufactured units will likely be reserved for exports, per the report. This means ‘Made in India’ AirPods will not be sold in India — at least initially. The initial AirPods units manufactured in India will be exported to markets such as the United States and Europe before Apple decides to release them into the Indian markets.

Will AirPods go cheaper?

Locally-produced AirPods could cause its prices to drop in India. However, if the iPhone’s history is anything to go by, a reduction in the costs is unlikely. When Apple began assembling iPhone units in India, the anticipation for cheaper iPhones faded right after Apple maintained the standard iPhone pricing.

Apple also does not seek incentivisation to boost sales of AirPods, which dominate the TWS market with a 23.1 per cent share in 2024, according to a report by Canalys. AirPods’ market share is about three times the share of its rival Samsung in volume. While a price drop might help Apple tap lower price ranges, it likely does not have a reason to do so.

What it means for Apple

The production of AirPods will allow Apple to expand its manufacturing base in India as part of its strategy to reduce production lines in China. The development also comes close on the heels of US President Donald Trump’s announcement of reciprocal tariffs on imported products. India currently imposes about 20 per cent tariffs on imported hearables/wearables, according to the India Cellular and Electronics Association.

If Apple is not planning to sell locally-produced AirPods in India anytime soon, escaping the tariffs will not mean anything. Moreover, India-manufactured AirPods might attract duty when sold in the US — Apple’s home market where it recently announced to invest $500 billion over the next four years to build manufacturing units.

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