In a significant move to bolster its manufacturing footprint in India, Taiwanese contract manufacturer Foxconn has commenced production of Apple AirPods at its Hyderabad facility, primarily targeting export markets. Simultaneously, preparations are underway to initiate operations at Foxconn’s expansive plant in Bengaluru, aimed at scaling up iPhone production in the country.
According to sources cited by Moneycontrol, the Hyderabad facility has started producing AirPods for export purposes. The upcoming Bengaluru plant, located in Devanahalli, is poised to play a pivotal role in ramping up iPhone production, with a projected peak capacity of 20 million units annually. This facility is set to be Foxconn’s second-largest outside China, established with an investment of $2.8 billion (approximately Rs 25,000 crore).
Analysts suggest that these developments align with Apple’s strategic objective to diversify its manufacturing base beyond China, especially in light of escalating U.S.-China trade tensions and associated tariffs. Navkendar Singh, Associate Vice President at IDC India, remarked that expanding production in India is a logical step to reduce dependency on China and meet global demand, particularly from the U.S. market.
Furthermore, Apple has been progressively increasing its manufacturing activities in India. In 2024, the company produced approximately 40–45 million iPhones annually in the country, accounting for about 18–20% of its global output. Projections indicate that this share could rise to 25–30% by 2025, underscoring India’s growing significance in Apple’s global supply chain.
The initiation of AirPods production in Hyderabad and the forthcoming iPhone manufacturing in Bengaluru mark critical milestones in Apple’s efforts to establish India as a key manufacturing hub, thereby enhancing its resilience against geopolitical uncertainties and supply chain disruptions.
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