Foxy AirPods Move

Foxy AirPods Move

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  • Foxconn, the world's largest contract electronics maker and assembler of around 70% of all iPhones, has won an order to manufacture AirPods for Apple (AAPL) for the first time. The deal underlines Foxconn's efforts to diversify production away from China, and it plans to build a factory in the southern Indian state of Telangana to produce the wireless earphones. Foxconn will invest more than $200 million in the new India AirPod plant, according to one source with direct knowledge of the matter. 

  • Foxconn officials debated for months whether to make AirPods due to lower profit margins but decided to "reinforce engagement" with Apple to secure orders for new products. The decision to set up production in India was reportedly requested by Apple. Foxconn competes with Wistron and Pegatron to win more Apple orders. Foxconn Interconnect Technology plans to begin production in Telangana by the end of 2024.

Why it matters

This move by Foxconn to manufacture AirPods in India marks a significant shift away from its reliance on China for production and highlights Apple's desire to diversify its supply chain. It also comes as the COVID-19 pandemic continues to disrupt manufacturing and global supply chains, prompting companies to rethink their production strategies.


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