Apple is set to expand its manufacturing operations in India by producing AirPods, with production commencing in April 2025.

Foxconn has made a significant investment of approximately $400 million to establish a factory in Hyderabad, a project that was approved in August 2023.

Trial production of AirPods at the Hyderabad plant reportedly began in December 2024, with earlier plans also considering the manufacture of AirPods charging cases.

Despite this expansion, Apple continues to depend heavily on China and Taiwan for its manufacturing needs.

This initiative is part of Apple's broader strategy to diversify its supply chain and reduce reliance on China, particularly in light of global challenges such as the COVID-19 pandemic and ongoing U.S.-China trade tensions.

The India Cellular and Electronics Association (ICEA) has suggested that waiving import duties on smartphones and wearables could greatly benefit India's manufacturing sector.

As of 2024, Apple holds a commanding 23.1% market share in the global True Wireless Stereo (TWS) segment, significantly outpacing Samsung, which holds 8.5%.

Manufacturing in India is expected to help Apple mitigate tariffs on imports from China, allowing the company to maintain production for other markets while supplying the U.S. from India.

The production of AirPods will be Apple's second product category manufactured in India, following the successful production of iPhones.

Currently, India imposes a 20% import duty on hearables and wearables, contrasting with the absence of such tariffs in the U.S., which has sparked discussions about potentially waiving these duties for imports from the U.S.

While the specific models of AirPods to be produced in India have not been disclosed, all units will be exported to other countries.

Initially, the production will be exclusively for export purposes, aligning with Apple's global strategy.