After producing 70 percent of the world’s iPhones, Foxconn has reportedly won AirPods orders from Apple for the first time in its history. To get started with fulfilling orders, the assembling giant is apparently prepping a multi-million facility that will be constructed outside of China, a country that is considered by many to be the primary hub of iPhone production.

Foxconn to invest $200 million for AirPods production, but no word on the kind of order Apple’s supplier has won

The company is said to invest more than $200 million in India, and according to Reuters, it will be solely dedicated to AirPods production. The report states that the new plant will be located in the southern Indian state of Telangana, but no word was received on the kind of order Foxconn has won. Then again, the proof is in the numbers, and if Apple’s leading assembling partner invests this kind of money in a new plant, the rewards should be massive.

The decision to set up the AirPods production plant in India was made by Apple, according to one source that is familiar with the company’s plans. With trade sanctions being placed on China, it will become difficult for various tech companies, including Apple, to resume their business in the region. This is one reason why the California-based giant is actively setting up production facilities outside of the country, in the hopes that the production output eventually improves in those regions to the extent that Apple no longer depends on China.

Both Apple and Foxconn have declined to comment on their future plans, but the report mentions that the assembling company’s officials debated with each other for months on whether to set up an AirPods assembling plant. This is because compared to the rest of Apple’s products, assembling AirPods generate lower profit margins, so that $200 million investment should mean that Foxconn will be working in massive shipment volumes to make up for that low-margin operation.

However, as you would guess, production of AirPods in the region will not commence immediately. Foxconn’s subsidiary, Foxconn Interconnect Technology, is expected to start construction of the facility in the second half of this year, with operations kicking off by the end of 2024. At this time, Apple will have to rely on other regions to fulfill AirPods shipments.

News Source: Reuters