As previously known, Apple is building more production units in India to reduce its reliance on China, even though the US restrictions on trade for Covid have made the whole task more disruptive and risky. The iPhone is the sole Apple product that is presently partially produced in India, with AirPods now being the second. An important step in the US tech giant’s drive to increase production in India has been crafted with the start of AirPod component production in India by a key supplier to Apple Inc.
People with knowledge of the situation wished to remain anonymous because the move isn’t publicly stated that the Indian division of Jabil Inc. has started shipping AirPods enclosures, or plastic bodies, to both China and Vietnam, where the wireless earphones are assembled. This indicates that Jabil is likely trying to diversify its production locations for Apple products, given the current uncertainty and unpredictability of the US-China trade war.
With Apple’s recent insistence on shifting its production out of China and to other countries, Jabil’s move to expand its production locations seems like a strategic decision made in the face of the current global geopolitical climate. Apple is widening production in India in order to decrease its reliance on China, where manufacturing is becoming riskier due to US trade restrictions and Covid-related disruptions. The iPhone is the only Apple product that is currently partially produced in India, with AirPods becoming the second.
Developing India’s manufacturing sector is a national priority for Prime Minister Narendra Modi, who has decided to offer financial incentives and government support for business expansion plans. With partners like Hon Hai Precision Industry Co. producing more iPhones in the country for the most recent generation than ever before, Apple has played a key role in that effort. Apple’s collaboration with India has brought the country closer to its goal of becoming a major player in the global manufacturing market.
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