Apple started to manufacture AirPods in India earlier this year through its partner Foxconn. However, the production line is now facing disruptions, and the major concern arises from China, as it has restricted exports of two crucial rare earth metals- dysprosium and neodymium, which are used in the making of AirPods. These metals are essential for the magnetic components inside the product.
Foxconn raises concerns with the Telangana government
Foxconn, which operates the AirPods production facility in Telangana, has informed the state authorities about the issue. While production has not come to a complete halt, the supply constraints have started to affect the overall output.
India cannot force a fix: China is not backing down
India cannot demand that China resume exports, and China appears unwilling to ease restrictions any time soon. The geopolitical tension adds another layer of complexity. Since India has been eating into China’s global manufacturing share, this move seems like a strategy to slow down the momentum of production in the Indian manufacturing unit.
Apple and Foxconn had prepared for this
This is Interesting to inform that 0pple and Foxconn together had anticipated such issues to arise in the near future (long back). They had proactively stocked up on some rare earth materials to avoid immediate disruption. However, these buffers are limited and may only help for a short period unless a long-term solution is found.
Make-in-India drive still strong
Despite so many setbacks for the production of iPods, India's Make-in-India initiative remains unaffected at large. iPhone and other Apple product assembly are still progressing well, with production volumes increasing steadily.
China's deliberate action against the Indian manufacturing unit
As Apple aims to reduce its dependence on China and position India as a key manufacturing hub, the quiet withdrawal of Chinese technicians from Foxconn's Indian operations highlights the complexities of this transition. While the move aligns with India’s push for self-reliance and Apple’s global diversification strategy, the sudden exit could slow down critical knowledge transfer and affect short-term productivity. Whether this disruption is a strategic move by China or just geopolitical fallout, it underlines how global tech supply chains remain deeply intertwined with diplomacy and power play.
