Apple is expanding its manufacturing footprint in India, with plans to start producing AirPods locally. This marks another significant step in Apple’s strategy to reduce reliance on China and strengthen its presence in India’s growing electronics market. The production will be managed by Foxconn Technology Group at a facility near Hyderabad, Telangana. Trial production has already started, with full-scale manufacturing expected in early 2024.
Apple AirPods production in India: Will it be cheaper in India?
Local manufacturing typically reduces costs associated with import duties and logistics, raising hopes for price reductions. However, Apple’s history of maintaining premium pricing makes it unlikely that AirPods will see dramatic price cuts anytime soon.
Factors like local taxes, production costs, and demand heavily influence product pricing. While local production may lead to modest price drops or better offers over time, Apple’s initial focus is likely on improving availability and meeting demand in the Indian market.
How India’s policies are encouraging local manufacturing
India’s 2024 Union Budget has played a crucial role in boosting electronics manufacturing. The reduction in basic customs duty on mobile phones and chargers earlier this year lowered total customs duty to 16.5 per cent. This policy has incentivized companies like Apple to scale up local production.
Apple has already passed some of these benefits to consumers. In July 2024, it offered price cuts of up to Rs 6,000 on the iPhone 15 series, a rare move months before the iPhone 16 launch. Similar discounts on AirPods could be possible as production ramps up, though immediate significant price drops are unlikely.
Long-term benefits for Indian consumers
While drastic price reductions may not happen immediately, local manufacturing of AirPods could lead to long-term benefits for Indian buyers. Faster availability, potential incremental price cuts, and increased market competitiveness are likely outcomes as Apple expands its manufacturing capacity and demand grows.
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