Foxconn Wins AirPod Order from Apple, Plans to Build Factory in India

Apple supplier Foxconn has reportedly won a hefty order to manufacture AirPods for the Cupertino company. Additionally, it’s said that Foxconn aims to build a brand new $200 million factory in India.

Word comes by way of Reuters which reports that sources state Foxconn has been tapped to supply Apple’s AirPods for the very first time. Foxconn is a key supplier for Apple’s catalogue, including an estimated 70 percent of all iPhones. In a further effort to diversify its supply chain from China, Apple is giving the Taiwanese manufacturer a new contract.

Up until now, the manufacturing of Apple’s AirPods have been conducted by a number of China-based suppliers, including Luxshare. This company has been readily supplying Apple its AirPods in China and Vietnam. However, late last year, it was reported that Apple was looking to advance manufacturing in India.

In addition, sources claim that Foxconn is looking to invest $200 million in the development of an India AirPod factory. If successful, the supplier aims to break ground somewhere in the southern Indian state of Telangana. However, it’s unknown what the timeline on this development may be.

It’s suggested that Foxconn once withheld its desire to supply Apple its AirPods due to the lower profit margins. However, the latest report claims that the deal went through to  “reinforce engagement” with Apple. It’s believed that Apple suggested Foxconn initiate production in India.

Apple has been strategically looking to shift supply focus from China. Throughout the COVID-19 pandemic, Apple faced numerous hurdles due to lockdowns and supply chain issues within China. This caused Apple to urge suppliers to expand its production horizons. This has led many suppliers to look at India and Vietnam as potential grounds for expansion.