Apple is making India more visible in its plans to diversify its production centers. Foxconn, one of the company’s largest manufacturing partners, is doubling its AirPods production capacity at its facility in Hyderabad. Thus, it is aimed to respond more quickly to both the needs of the local market and global demands. This move is a reflection of the importance Apple attaches to production options outside China.
The Hyderabad facility, which currently produces 100 thousand units of AirPods per month, will reach 200 thousand units per month with the complete renewal of five production lines. This transformation will not be limited only to production; There will also be a significant increase in the number of personnel. The current number of employees of 2,000 will increase to 5,000 in a short time. This expansion represents a remarkable development in terms of employment and industrial infrastructure in India. On the other hand, it is stated that some machines to be integrated into the production process will be brought from Foxconn facilities in Vietnam. This stands out as an important step that will accelerate technical integration while increasing cost efficiency in the production process.
Apple continues to move its production power out of China
Foxconn is expected to invest a total of 48 billion rupees in its production facility in India. 30 billion rupees of this investment has already been realized. All this activity shows that Apple is determined not only to secure product supply, but also to expand its regional production capability. Although this investment will increase India’s production capacity, its main focus is on making the global supply chain more resilient. With such investments, Apple will be able to continue distributing its products worldwide without being affected by possible trade tensions. In addition to all these, the existence of customs exemption for the export of electronic products produced in India to the USA creates an additional advantage for Apple.
It is reported that the new AirPods models will be produced not only for India, but also for the US and European markets. This distribution plan signals that the company is realigning its logistics strategies on a global scale. Shipments directly from India to these two major markets will both reduce costs and shorten the supply time. Apple positions this production center in India as an insurance against delays that may occur in the supply chain. Additionally, this model significantly reduces dependence on China by increasing regional flexibility in the production network. It is known that similar transitions are also implemented in iPhone production.
Apple has shifted the production of various models of the iPhone to India. Thanks to this implementation, devices for the US market are now shipped from facilities in India. Including AirPods in this planning further increases the strategic importance of India for Apple. With the capacity increase of the facility, not only production but also logistics infrastructure will be strengthened. However, these transitions are affected not only by economic but also by political conditions. In the shadow of trade tensions with China, alternative centers such as India provide Apple with relief.
Apple’s diversification of its manufacturing footprint isn’t limited to Asia. Apple, which has increased its production capacity in the USA, clarified this approach with the 600 billion dollar investment plan announced last year. The production of cover glass used in iPhone and Apple Watch was moved to the USA. It can be said that this orientation targets not only production diversity but also technological independence. It is also observed that production in the USA positively affects customer satisfaction by shortening the supply time. These strategic moves of Apple are being followed carefully in terms of long-term production security.
In light of all these developments, Foxconn’s increase in production volume in India is not considered just a short-term capacity increase. Apple may apply this production model to other product lines in the future. Particularly for high-volume and logistically sensitive products such as AirPods, spreading production to different regions strengthens the company’s risk management. Moreover, this method also contributes to faster access to markets. In this context, it is clear that India is increasingly coming to the fore in Apple’s production strategies. On the other hand, Apple’s diversification of its production bases sets an example for other technology giants.