Foxconn Begins Apple AirPods Production in Hyderabad, iPhone Boost

Foxconn has started manufacturing Apple AirPods at its Hyderabad plant for overseas markets, according to sources with direct knowledge of the matter. The move aligns with Apple's broader strategy to increase manufacturing operations in India, reducing reliance on China amid ongoing geopolitical tensions and elevated U.S. tariffs on Chinese imports.

The production at the Hyderabad facility marks a significant milestone as Apple diversifies its supply chain. Sources indicated that Foxconn's upcoming manufacturing plant near Bengaluru will also commence operations soon. The Karnataka-based facility, located in Devanahalli, is expected to play a central role in iPhone assembly and exports.

"AirPods are now being produced at the Hyderabad unit for export. The Devanahalli facility will follow shortly and has been designed for high-volume iPhone production," one individual aware of the development stated. The new Bengaluru plant, established with an estimated investment of $2.8 billion (approximately Rs 25,000 crore), is projected to handle an annual output capacity of up to 20 million iPhone units.

Alongside Foxconn, Tata Electronics is also contributing to Apple's local manufacturing push. The company has started producing components like iPhone casings and is reportedly handling final assembly of previous-generation iPhones at its Hosur facility. Initial shipments from the Tata plant are expected in the coming days.

Tata Electronics recently assumed operations of former Pegatron and Wistron facilities, elevating its role to Apple’s second major manufacturing partner in India, after Foxconn. The production expansion is part of Apple's plan to shift assembly of over 60 million iPhones annually to India by 2026, catering entirely to U.S. demand.

Trial production of Apple’s upcoming iPhone 17 series has also begun in India. Foxconn is leading the initial build, while Tata is preparing to scale component manufacturing to support future output volumes.

In March, Apple exported $2 billion worth of iPhones from India to the United States, marking a record monthly shipment value for both Foxconn and Tata. The majority of this output was attributed to Foxconn, though Tata’s contribution is expected to rise with the activation of its new lines.

Industry analysts view this shift as a calculated response to global trade dynamics. "Increasing production within India allows Apple to mitigate supply chain risks and reduce exposure to China-centric manufacturing,” said Navkendar Singh, associate vice president at IDC India. "Scaling up output from existing facilities is a faster and more feasible path to meeting export goals."

Data from IDC shows Apple manufactured between 40 and 45 million iPhones in India in 2024, accounting for nearly 20 per cent of its global production. That figure is projected to climb to 25–30 per cent by the end of 2025.

Apple, Foxconn, and Tata Electronics did not respond to queries regarding the developments.