Apple Asks Suppliers To Shift AirPods, Beats Production To India

Apple is asking suppliers to move some AirPods and Beats headphone production to India for the first time, in a win for the South Asia nation as it attempts to rise in the global supply chain. Nikkei Asia Review reports: The move is part of Apple's gradual diversification from China, as it looks to lower the risk of supply chain disruptions stemming from the country's strict zero-COVID policy and tensions with the U.S. Apple has been talking with a number of its suppliers about increasing production in India, including of key acoustics devices, as early as next year, three people familiar with the matter told Nikkei Asia. In response, iPhone assembler Foxconn is preparing to make Beats headphones in the country, and hopes to eventually produce AirPods there as well, two people with direct knowledge of the matter said.

Luxshare Precision Industry and its affiliates, which already produce AirPods in Vietnam and China, also plan to help Apple make the popular wireless earphones in India, sources said. However, Luxshare is focusing more on its Vietnamese AirPods operations for now and could be slower than its competitors in starting meaningful production of Apple products in India, one of the people said. Bringing AirPods and Beats production to India would enlarge Apple's production footprint in the country, following a recent announcement that the latest iPhone is already being made there. Apple started having some older iPhone models made in India in 2017 by a smaller supplier, Wistron, but only accelerated such production last year.

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