Introduction
Apple is doubling down on India as it reshapes its global manufacturing strategy. Taiwanese contract manufacturer Foxconn has started producing AirPods in Hyderabad.
It also plans to begin iPhone production at a massive new factory near Bengaluru in the coming weeks.
The shift is part of Apple’s effort to reduce its dependency on China amid growing geopolitical tensions and rising U.S. tariffs.
This move signals Apple’s serious commitment to turning India into a global manufacturing and export hub—not just for iPhones, but also for its key accessories.
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Overview: Key Developments at a Glance
Foxconn begins AirPods production at its new Hyderabad plant, focused on global exports.
Bengaluru facility to start iPhone manufacturing soon with an annual capacity of 20 million units.
Foxconn invests $2.8 billion in the new Devanahalli unit, its second-largest outside China.
India gains strategic importance in Apple’s global supply chain.
U.S.-China trade tensions push Apple to accelerate its “China+1” diversification strategy.
Apple Shifts Gears: Why India?
For over a decade, Apple relied heavily on China for almost all its product manufacturing. But the global landscape is changing fast.
The U.S. government under President Donald Trump has imposed steep tariffs—over 100% in some categories—on Chinese imports.
Tech companies now face growing risks linked to trade restrictions, rising labor costs, and political instability.
India presents a viable and attractive alternative. The country has low-cost skilled labor, a stable political climate, and strong government incentives to boost local manufacturing.
In 2024, India overtook China as the world’s most populous country, making it a key consumer market as well.
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AirPods Start Production in Hyderabad
Foxconn has officially kicked off AirPods production at its Hyderabad facility. According to sources familiar with the matter, the facility is currently operating with a focus on export markets.
This marks a major milestone for Apple, which had never manufactured AirPods in India before.
The Hyderabad facility adds to Apple’s growing manufacturing base in India. Until now,
Apple’s Indian operations were largely focused on assembling older-generation iPhones for domestic use. The inclusion of high-demand accessories like AirPods signals a broadening of Apple’s local portfolio.
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New iPhone Factory Near Bengaluru Set to Launch
Meanwhile, Foxconn is finishing work on a brand-new iPhone manufacturing plant in Devanahalli, near Bengaluru.
The factory, built with an investment of $2.8 billion (Rs 25,000 crore), is expected to start operations within weeks.
The facility is set to become Foxconn’s second-largest outside China. At full capacity, it will produce 20 million iPhones annually.
A significant portion of the output will be exported to key markets including the U.S. and Europe.
This marks the first time India will play a central role in Apple’s flagship iPhone production for export at this scale.
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Government Support Accelerates Apple’s India Push
The Indian government has been aggressively promoting its “Make in India” campaign, offering lucrative incentives under the Production Linked Incentive (PLI) scheme. The PLI program provides tax rebates, subsidies, and fast-track approvals to electronics manufacturers who meet local production targets.
Foxconn, Pegatron, and Wistron—all Apple suppliers—are key beneficiaries of this policy. Foxconn alone has committed to investing over $4 billion in Indian operations by 2027. The Hyderabad and Bengaluru units are part of that long-term plan.
India’s Growing Role in Apple’s Global Strategy
Apple has quietly expanded its footprint in India over the past five years. In 2023, it opened its first official retail stores in Mumbai and Delhi.
By 2024, Apple had started assembling the iPhone 15 and 15 Plus in India just weeks after their global launch—a record turnaround.
With the addition of AirPods and a high-capacity iPhone facility, Apple is no longer just testing the waters. It is building India into a key pillar of its global production ecosystem.
Industry experts say this is only the beginning. Apple may soon shift iPad, MacBook, and even Apple Watch production to India as part of its long-term diversification strategy.
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Job Creation and Economic Impact
The expansion has a direct impact on India’s economy. Foxconn’s new plants are expected to generate tens of thousands of jobs, both directly and indirectly. The Bengaluru plant alone could employ up to 50,000 workers at full scale.
In addition to job creation, these investments are driving infrastructure upgrades, technology transfers, and the growth of ancillary industries like logistics, precision tooling, and packaging.
India’s tech manufacturing ecosystem is maturing fast. Local suppliers are improving quality and efficiency to meet Apple’s high standards. This benefits not just Apple but the broader electronics sector.
Why This Matters for Apple and Investors
For Apple, this shift is about more than just cost savings. It’s about risk management. Relying too much on China has proven risky—due to lockdowns, regulatory crackdowns, and now, mounting tariffs.
By expanding in India, Apple gains geographic diversification, lowers exposure to geopolitical shocks, and gets closer to a rapidly growing customer base.
India’s smartphone market crossed 170 million units in 2024, and premium device sales jumped by over 30% year-on-year.
Investors are taking note. Apple’s decision to increase manufacturing in India is seen as a long-term play for margin stability, faster growth in Asia, and stronger supply chain resilience.
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Conclusion: India Emerges as Apple’s Second Home
With AirPods now made in Hyderabad and iPhones soon to come out of Bengaluru, India is set to become Apple’s next big manufacturing base.
The company is no longer just assembling older models or testing small batches. It is building a full-scale, export-ready supply chain in South Asia.
As trade risks rise and costs increase in China, India is stepping in at the right time. With strong government support, a tech-ready workforce, and rising local demand, Apple’s bet on India looks like a smart, long-term move.
Expect more Apple products with the label “Made in India” very soon—not just for Indian consumers, but for the world.
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