Apple has awarded a contract to Taiwanese manufacturer, Foxconn, to produce its popular AirPods. As reported by Reuters, the company is expected to invest around $200 million in setting up the factory in Telangana, India, with construction starting in 2023 and production ready to commence by late 2024.
This news comes just two weeks after Foxconn chairman, Young Liu, signed an agreement with the Telangana government to establish an electronic manufacturing unit in Hyderabad. The AirPods facility is said to be operated by Foxconn Interconnect Technology, a subsidiary of Foxconn.
The Telangana government had been holding discussions with Foxconn for several months in relation to a 200-acre site in the Ranga Reddy district. Apparently, Foxconn employees had internal debates about whether to assemble the AirPods due to their relatively lower profit margins. Nevertheless, it’s apparent that the potential long-term benefits of producing the popular Apple product convinced Foxconn to push through with the project.
This deal is good news for both Apple and Foxconn. Apple’s customers will benefit from increased supply if the AirPods are produced locally in Telangana while Foxconn will benefit from increased investment and expansion in India. It will also strengthen ties between Taiwan and India, with Foxconn establishing a presence in India and generating employment opportunities in the region. Overall, this is an exciting development for both companies and for the technology industry as a whole.