Apple is set to commence production of AirPods at the Foxconn plant in Hyderabad from April, marking its second product category to be manufactured in India after iPhones, sources said.
"Production of Airpods is going to start in India at Foxconn's Hyderabad facility. It will begin from April but it will be only for exports as of now," an industry source said.
Foxconn had allocated USD 400 million (approximately Rs 3,500 crore) for setting up the factory in August 2023.
Apple continues to dominate the global true wireless stereo (TWS) market. According to research firm Canalys, Apple held a 23.1% market share in 2024, significantly ahead of Samsung, which accounted for around 8.5%.
The decision to manufacture AirPods in India gains significance amid concerns that Apple may reduce production in the country following reciprocal tariffs imposed by US President Donald Trump. These concerns have been further fueled by Apple's announcement of a USD 500 billion investment in US manufacturing facilities over the next four years.
According to data from the India Cellular and Electronics Association (ICEA), India currently imposes a 20% import duty on hearables and wearables, while the US has no such tariffs. ICEA has suggested that India could benefit by waiving import duties on smartphones, hearables, and wearables imported from the US.