Apple Planning to Double Monthly AirPods Production Capacity in India After iPhone: Report

Apple has been ramping up production of its devices in India, including iPhone models. The company has roped in two companies to manufacture its smartphones in the country: Tata and Foxconn. Now, one of Apple's contract manufacturers is reportedly planning to double the production capacity of its Hyderabad facility in the country where AirPods are assembled. This move is part of Apple's larger strategy to reduce its dependence on facilities in China by moving its production lines to India. Recently, the tech giant also reportedly started producing more iPhone units in India.

Apple's Move Comes as Part of Its Larger Plan to Shift Production to India From China

The Economic Times reports that a wholly owned subsidiary of Apple's Taiwanese contract manufacturer, Foxconn Interconnect Technology (FIT), will increase its workforce and production lines at its Hyderabad facility over the next six to eight months to ramp up manufacturing of Apple AirPods.

Foxconn's plant situated in Telangana's Kongara Kalan reportedly began the production of Apple AirPods models earlier this year, in April. The contract manufacturer is said to be importing machinery to India from its factories in Vietnam to facilitate the same. Moreover, the company is planning to overhaul five of its production lines to make new AirPods models, which could be the recently launched AirPods Pro 3.

The Cupertino tech giant is said to be making the move to match its production capacity with the increased international demand. The report added that Foxconn's subsidiary is planning to increase the monthly AirPods manufacturing capacity of its Hyderabad plant to 2,00,000, increasing from its current capacity of about 1,00,000. As of now, the facility reportedly has around 2,000 employees. Post-overhaul, after six to eight months, this number is said to jump to 5,000, more than doubling.

As per the report, Apple's contract manufacturer is looking to invest Rs. 4,800 crore. The company is said to have already invested Rs. 3,000 crore. One or two of the production lines could be new, which will be imported from FIT's plant in Vietnam.

Recently, a report highlighted that Foxconn's Telangana facility is facing a dysprosium shortage, which is a rare earth metal used in high-performance magnets of Apple AirPods. It is important to note that China is one of the major exporters of the rare-earth metal. However, the supply chain disruption did not result in a complete halt to AirPods production.