Recently, news emerged suggesting that Apple will further expand AirPods production in India. As part of its ongoing efforts to diversify its global supply chain beyond China, Apple is rapidly expanding AirPods production in India. According to reports from MacRumors and Business Standard, Foxconn Interconnect Technology (India), a major Apple supplier, has begun expanding operations at its Hyderabad plant, with AirPods assembly expected to begin very soon.
Currently, this plant produces approximately 100,000 to 120,000 AirPods per month, but Apple and Foxconn are planning to double this capacity to approximately 200,000 units per month within the next few quarters. So, let’s explore how much Apple will invest and how much India will benefit from this move.
₹4,800 Crore Investment and Job Creation Boost
Foxconn has already invested over ₹3,000 crore at its Hyderabad factory, and the total investment is expected to reach ₹4,800 crore as production increases. This expansion will not only expand Apple’s local manufacturing footprint but also create over 3,000 new jobs, increasing the workforce from 2,000 to approximately 5,000 over the next 6-8 months.
The expanding role of the Hyderabad plant reflects Apple’s long-term commitment to making India a manufacturing hub. This shift in production is also supported by the Indian government’s Production-Based Incentive (PLI) scheme, designed to boost domestic electronics manufacturing.
Strengthening the Make-in-India Vision
Currently, the AirPods 4 and AirPods Pro 3 are assembled at the Hyderabad plant, and both are shipped globally from India. Foxconn is also moving some of its equipment from Vietnam to India, signaling Apple’s strategy to diversify its production network.
Furthermore, India’s growing importance to Apple’s global operations is evident – iPhone exports from India increased by 75% in the first half of 2025, and Apple now plans to make India a major base for both iPhone and accessories manufacturing.
Challenges and Considerations
While Apple’s expansion of AirPods manufacturing in India is a major step toward diversifying its global supply chain, it also comes with a few notable challenges. One of the biggest concerns is supply chain management, especially the sourcing of rare-earth materials like dysprosium, which are essential for the AirPods’ internal components. Ensuring a steady and sustainable supply of such critical materials will be key to maintaining production efficiency.
Another challenge lies in quality control. As Foxconn scales up output from 100,000 to 200,000 units per month, maintaining Apple’s strict product quality standards will require advanced automation, workforce training, and close supervision. Any lapse in quality could affect both Apple’s reputation and the credibility of India’s manufacturing ecosystem.
Lastly, global market fluctuations — such as shifts in consumer demand, changes in trade policy, and geopolitical tensions — could impact Apple’s production and export plans. Balancing domestic manufacturing goals with international market conditions will therefore be crucial for ensuring the long-term success of Apple’s Make-in-India initiative.
What This Means for India
Apple’s expansion of AirPods highlights how India is emerging as a global manufacturing hub for premium electronics. This move will not only strengthen Apple’s position in the Indian market but also attract other multinational suppliers to set up production facilities in the country.
With new investment, job creation, and cutting-edge manufacturing technology, India’s “Make in India” initiative continues to gain momentum — and Apple appears to be one of its biggest global partners yet.
