Apple supplier Foxconn plans $200m AirPod factory in India

Oluwanifemi Ojo
Oluwanifemi Ojo
Foxconn, iPhone Assembler in China

Apple’s largest IPhone assembler, Foxconn has won an order to make AirPods for Apple and plans to establish the factory for the wireless earphones in India.

This was according to the information Igotten from two individuals with direct knowledge of the company’s decision and told Reuters.

This contract will make Foxconn an AirPod supplier for the first time and gives the key apple supplier the chance to further diversify production away from China.

According to a source, Foxconn would invest more than $200 million in the new Telangana AirPod plant in southern India. The value of the AirPod order wasn’t immediately clear.

The source who requested not to be mentioned as the issue was not yet public said, “Foxconn officials had debated internally for months about whether to assemble AirPods due to relatively lower profit margins on making the device, but ultimately opted to go ahead with the deal to reinforce engagement with Apple.”

“That way, we are more likely to get orders for their new products,” the person said.

According to the insider, Apple demanded that production be moved to India.

It was reported that Foxconn competes with Taiwanese rivals such as Wistron Corp and Pegatron Corp to win more orders from Apple, the global electronic gadget giant.

After Reuters first reported the news, Foxconn unit shares which has earlier recorded a loss of 2.2% jumped nearly 9%.

The second individual who provided information about the firm and preferred not to be mentioned
said “the Foxconn subsidiary will make AirPods in India without providing further details.”

Analysts have previously reported that Apple has asked suppliers, such as Foxconn, to manufacture AirPods in India, but specifics regarding the scope of the investment, the timetable, and which suppliers have such plans have not been made public.

Meanwhile, Foxconn chose not to respond. A request for comment from Apple did not receive a prompt response.

TAGGED: , , ,
Share this Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *