Apple has signed a new deal with Foxconn to manufacture AirPods wireless headphones in India, which until now have only been made in China. Thanks to the concluded cooperation, Foxconn will invest 200 million dollars in the creation of a new production plant.
Despite the fact that the production of AirPods at Foxconn is not as profitable as the iPhone, the company agreed to the new contract to strengthen its relationship with Apple. The technology company has specifically requested that production take place in India, thus indicating the goal of reducing dependence on China.
The production of Apple products in China has been taking place for more than two decades, however, the strained relations between the United States and the geopolitical situation in recent years have forced a change in the usual order. The aim is to reduce the monopoly of component production from China by moving it to other countries. One example is India. But the downside of the new cooperation is the quality of the products.
India’s culture is not as exacting on manufacturing standards as China’s, but this is more of a transition period that will take Apple longer to reach the company’s usual standards. However, the trend is clear, and it looks like Apple is not going to back down from it. Analysts predict that by 2025, 75% of iPhones will be produced in China, while the remaining quarter will be split between India and Vietnam.
