December 9, 2023

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Apple has asked suppliers to start manufacturing some of its AirPods and Beats headphones in India early next year. Nikkei Asia Report Wednesday.

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The talks mark the company’s latest effort to reduce the risk of supply chain disruptions in China due to the COVID lockdown and escalating US-China trade tensions. Apple was reportedly in talks to move some of its Apple Watch, MacBook and HomePods to Vietnam in August, and announced in September that it was assembling some of its flagship iPhone 14 phones in India.

Apple is still heavily dependent on China for most of the iPhone production.

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According to the report, Foxconn, one of Apple’s manufacturing partners, will make Beats headphones in India and try to make AirPods there in the future. Luxshare Precision Industries, which manufactures Apple’s AirPods in Vietnam and China, will also support AirPods production efforts in India.

Apple is looking to increase sales in India, the world’s second largest smartphone market. And although the company’s shift to production in India was initially aimed at increasing sales, it is now treating the country as a strategic production base, according to the report.

Nikkei Asia said India will work to attract more investments by spending over $30 billion on its electronics supply chain.

An Apple representative did not immediately respond to a request for comment.

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