AirPods are getting a refresh soon
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Apple continues to look for a way to circumvent looming tariffs on imports from China, and AirPods are said to be the latest product to benefit from being assembled in India.
Foxconn has been an assembly partner for Apple for years, and a new report claims that its Indian unit will start receiving orders to assemble AirPods. In addition to using the existing workforce in India, the move will help Apple ease the burden of tariffs that are expected to be imposed on imports from China in early 2025.
The effort will reportedly begin in the first quarter of 2025, but it is not yet clear which models will be assembled in the country.
A report published by Bloomberg on Friday morning said that assembly will take place at a new plant near Hyderabad. Trial production is said to be underway, with production being sped up provided quality checks are passed.
Currently, Apple makes AirPods in China and Vietnam, with the plastic cases made in India and exported to China for assembly. India is a logical expansion for full AirPods production, given how well the country’s iPhone assembly efforts are going.
In April 2024, about 14% of the world’s iPhones came from India. Officials in the country say Apple wants to make 25% of iPhones in India by 2028 — but that timeline could accelerate given the Trump administration’s threat to slap high tariffs on companies importing goods from China.
So expanding the AirPods supply chain to India is far from a sudden or unexpected move. Apple and other tech companies have been working for years to reduce their reliance on China.
As a result, Apple's suppliers have spent $16 billion moving out of China by January 2024. While countries like Vietnam have benefited, the expansion in India has made Apple the fastest-growing firm in the country in the last 50 years.
Aside from the expected escalation of tensions between the US and China, Apple is said to be working with Indian companies because of lucrative incentives provided by the Modi administration.
It has not been all smooth sailing, however, as economic tensions between India and China have been escalating. This has led to India denying Chinese firms permission to set up operations in the country, including iPad maker BYD.
Apple also had to deal with a factory fire in October 2024, as well as on-and-off antitrust allegations.
New AirPods Pro are expected in 2025. Fourth-generation AirPods were released alongside the iPhone 16 in September 2024.
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