Apple supplier Jabil has started manufacturing AirPods components in India, a further sign of Apple's aim to shift production outside of China.
The AirPods components, which include enclosures or plastic bodies, are
now being shipped to manufacturers in China and Vietnam for final
assembly.
- It's the first time an India-based Apple supplier has manufactured parts for a device other than the iPhone.
- Jabil is producing the Airpods components at an 860,000-square-foot plant employing 2,500 workers in Pune, western India.
- The news comes after a Nikkei Asia report said Apple is asking suppliers to shift production of some AirPods and Beats headphones to India
- Chinese
supplier Luxshare Precision Industry Co. has also gained clearance from
the Indian government to locally produce the earphones, shifting more
of the supply chain to India. It currently makes the earbuds in China
and Vietnam.
- The request
comes as Apple seeks to diversify from China amid U.S.-China trade
tensions and COVID-19 lockdowns that disrupted its supply chain.
- Apple
began assembling iPhones in India in 2017. While 98% of iPhones are
still made in China, the company is expected to ramp up shipments of
India-made iPhones.
- As of Q3 2022, Apple has a 31% market share of wireless stereo devices, which includes earbuds and headphones.