Apple has launched pilot production of its wireless earbuds, AirPods, at a new facility near Hyderabad, India, signaling a significant shift in its manufacturing strategy.
On Friday, PhoneArena reported that Apple is conducting trial runs of AirPods production at its new plant in Telangana, India, showing Apple’s mass production in early 2024. This move follows Apple’s 2022 decision to manufacture iPhone 14 models in India.
AirPods will become the second major Apple product assembled in the country, underscoring India’s growing importance in the company’s supply chain.
Apple’s pivot towards India and Vietnam for production stems from rising operational costs in China and U.S. technology restrictions.
With some AirPods already being manufactured in Vietnam, this expansion strongly suggests that Apple is phasing out AirPods production in China.
However, industry experts predict that relocating production presents significant hurdles, particularly in terms of cost management and quality assurance.
Establishing manufacturing operations in new countries is a complex process that requires careful consideration of labor costs compared to those in China.
In related news, market research firm Canalys reports that Apple maintained a strong position in the wireless earbuds market. In the second quarter, it shipped 16.8 million devices and captured a 22% market share.
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