Foxconn to produce AirPods for the first time outside of China
Foxconn, a Taiwanese contract manufacturer, has received an order to manufacture Apple Inc’s AirPods and intends to construct a plant in India to create the wireless headphones, according to two people with direct knowledge of the situation.
Foxconn, the world’s largest contract electronics manufacturer and assembler of around 70% of all iPhones, will become an AirPod supplier for the first time, highlighting the company’s ambitions to diversify production away from China. AirPods are now manufactured by a number of Chinese companies.
Foxconn will invest more than $200 million in the new India AirPod facility in the southern Indian state of Telangana, according to a source. The value of the AirPod order was not immediately evident.
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The individual, who sought anonymity because the topic was not yet public, said Foxconn managers deliberated whether to construct AirPods for months owing to the device’s relatively lower profit margins, but finally decided to go forward with the transaction to “reinforce engagement” with Apple.
