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Apple Supplier Plans Second Indian Facility for AirPods Enclosures

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Apple supplier Jabil is planning to expand its AirPods enclosure production in India with a second manufacturing facility in Tamil Nadu, according to The Economic Times (Via DigiTimes).

airpods 4 new purple
The Florida-based electronics manufacturer already produces AirPods plastic casings at its existing plant in Pune, and is now looking to increase sourcing from India through the new facility in Tiruchirappalli. The company reportedly met with Tamil Nadu's chief minister recently, although construction of the new facility has yet to start. Jabil aims to finalize its expansion plans by July.

The development is another step in Apple's ongoing strategy to diversify its supply chain beyond China amid increasing trade tensions and tariff uncertainties. The current process involves shipping AirPods casings made in India to assembly plants in China and Vietnam.

Apple currently produces approximately 20% of its iPhones in India and plans to import most U.S.-bound iPhones from India by the end of next year. During Apple's latest post-earnings call, India was mentioned nearly as frequently as China, underlining its growing importance in Apple's manufacturing strategy.

The move comes a month after Foxconn began producing AirPods at its new $400 million Hyderabad factory. Assembly at this plant began in April, with initial production units destined for export markets.

Tag: India

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Top Rated Comments

S
senttoschool
14 months ago
No U.S. company is going to bring factories back home when tariffs could be reversed at any moment. Why spend millions/billions relocating production to the U.S. only for Trump or the next president to scrap the policy? If they move and tariffs are lifted, they’re stuck with higher costs while competitors who didn’t move gain the advantage. It takes years to recoup the cost of building and staffing a factory assuming you can even find the workers. The unemployment rate is around 4%, and few Americans want factory jobs anymore.

On top of that, much of the factory equipment comes from China and now that equipment is facing 100%+ tariffs too. How are U.S. manufacturers supposed to compete? If these tariffs hold, Chinese firms will dominate entire sectors the U.S. once led in. U.S. businesses will collapse, and Chinese companies will swoop in, buy the factories, slap on new logos, and sell globally cheaper, faster, and often with better quality.

iPhones that can be made in the US will only be competitive in the US. They will never be able to compete globally against phones produced in China. US citizens will pay $5,000 for their US-produced iPhones while the rest of the world will pay $1,000 for theirs.
Score: 7 Votes (Like | Disagree)
maerz001 Avatar
maerz001
14 months ago

Where is the US manufacturing?
Maybe they will built an US facility to plastic wrap the enclosure of the airpods ;)
Score: 4 Votes (Like | Disagree)
H
H2SO4
14 months ago
Where is the US manufacturing?
Score: 4 Votes (Like | Disagree)
S
svish
14 months ago
Good to see production expanding in India, especially for products other than iPhone. Expecting India to manufacture other Apple products too in the not so distant future.
Score: 1 Votes (Like | Disagree)
S
senttoschool
14 months ago

Lead time is another key element. So many variables, and all can change on a certain persons whim. It'd be like building a 4+year plan on quicksand. You'd have to be be nuts, seriously lucky else on the "inside" to think you'd come out of it, sunny side up.
Trump's plan is insane really. It's a noble goal to bring manufacturing jobs back to the US but tariffs isn't how you do it. Tariffs is usually used to protect an existing industry. It doesn't work to bring back manufacturing.

Furthermore, because tariffs are based on however Trump woke up that day, no company would take the risk to return manufacturing. Tariffs need something like a congress law for companies to take them seriously. If the president can just enact or waive tariffs, companies will just wait for the next president, if they can wait that long.
Score: 1 Votes (Like | Disagree)
RalfTheDog Avatar
RalfTheDog
14 months ago

Where is the US manufacturing?
It's never coming back. To compete on the world stage in manufacturing, you would need large numbers of very skilled people willing to work for less than minimum wage. They would also need to be willing to put in 14 hour days or longer.

American fingers are too fat to assemble iPhones or AirPods.

They assemble Mac Pros in Texas.

https://www.apple.com/newsroom/2019/09/apples-new-mac-pro-to-be-made-in-texas/

Or used to.

“Assemble” does not include the PCB Assemblies. Those components and machinery are all in China and always will be.
I think they make some today. I think they are also building a few servers. The costs are high and the build quality is low. They do it only for political reasons.
Score: 1 Votes (Like | Disagree)
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