The Indian unit of Apple supplier Jabil Inc has started manufacturing components for AirPods in the country and ships plastic bodies or cases for AirPods to China and Vietnam, Bloomberg News reported on Sunday, citing people familiar with the matter.
Apple and Jabil did not immediately respond to a Reuters request for comment.
The move marks another step in Apple’s plans to move its manufacturing away from China amid rising trade and geopolitical tensions between Beijing and Washington.
According to Trade and Industry Minister Piyush Goyal, the iPhone maker wants India to account for up to 25 percent of its output, up from around 5 to 7 percent currently. “Apple, another success story”, Piyush Goyal said Earlier this month to showcase India as a competitive manufacturing location. “They already manufacture about 5-7 percent of their production in India. If I’m not mistaken, they are targeting an increase to 25 percent of their production. They have launched the latest models from India that are made in India.”
Ashwini Vaishnaw, India’s Minister of Electronics and Information Technology, tweeted Monday that Apple’s exports from India reached $1 billion (about Rs. 8,141 billion) in December.
Apple has bet heavily on India since it began assembling iPhones in the country in 2017, in line with the Indian government’s push for local manufacturing. Last year the company asked his suppliers move some AirPods and Beats headphone production to India for the first time.
Apple’s iPhone assembler Foxconn is gearing up to make Beats headphones in India and hopes to eventually produce AirPods in the country, the report said, citing sources. Luxshare Precision Industry, a Chinese supplier to the iPhone maker, and its entities also plan to help Apple manufacture AirPods in India, according to the report.
