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In Big Step, Apple's India Supplier Making Airpods Parts For Export: Report

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Apple-supplier Jabil Inc's India unit has begun making components for AirPods in the country and is shipping plastic bodies or enclosures for AirPods to China and Vietnam, Bloomberg News reported on Sunday, citing people familiar with the matter.

Apple Inc and Jabil did not immediately respond to a Reuters request for comment.

The move marks another step in Apple's plans to shift its manufacturing away from China amid rising trade and geopolitical tensions between Beijing and Washington.

The India output has thus far been limited to the iPhone, making AirPods the second Apple product now partially manufactured in the country.

Apple has played a central role in the growth of India's manufacturing sector, with partners such as Hon Hai Precision Industry Co. producing more iPhones in the country for the latest generation than ever before.

US manufacturing services provider Jabil operates a 858,000 square foot (80,000 square meter) facility employing more than 2,500 workers in Pune, according to its website.

Apple’s latest India push comes as the government is working on plans to give financial incentives for local production of wireless earphones and smartwatches, the report added.

Apple is the world’s biggest maker of so-called true wireless stereo devices, a category that includes wireless earphones and headphones. It shipped 23.8 million units in the third quarter for a 31 per cent market share, according to research firm Canalys.

Apple’s latest India push comes as Modi’s government is drawing up plans to give financial incentives for local production of wireless earphones and smartwatches, one of the people said.

“Making enclosures is typically the first step for full-fledged production of AirPods,” said Neil Shah, vice president of research at Counterpoint. “Now that Apple has won initial approval for some suppliers including Luxshare, they are obviously building a supply chain for the end product



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Apple Sells 2 Million iPhones In India In Holiday Quarter, Logs 18% growth
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Apple sold 2 million iPhones in India in the fourth quarter of 2022 (also known as the holiday quarter), registering an 18% growth on a quarter-on-quarter (QoQ) basis, as per a new report.

According to the data provided by CMR (via IANS), iPhone 14 series grabbed 59% market share in Q4 2022, followed by iPhone 13 series at 32% share. Last year, Apple’s iPhone shipments in India during the July-September quarter increased 8% on a year-over-year basis and 44% sequentially after it shipped 1.7 million units.

Apple also became the first smartphone player in India to have exported $1 billion worth of iPhones in the month of December.

iPad sales in India

Apple also sold 0.2 million (2,00,000) units of iPads in India in the holiday quarter. The iPad Pro 2022 Series registered 30% growth, CMR said.

Apple leads the premium segment
A report by Counterpoint Research recently published its Q4 report saying that Apple led the market in Q4 2022 in terms of shipment value. Apple also continued to lead the premium smartphone segment, with the iPhone 13 emerging as the top-selling model.
The Tim Cook-led company grew 16% YoY in 2022 and maintained its lead in the overall premium segment (Rs 30,000 and above) as well as the ultra-premium segment (Rs 45,000 and above)

Apple's ‘Make in India’ initiative
The market research firm attributes Apple's success due to its increasing ‘Make in India’ capabilities for both local consumption and exports. The company also expanded offline share through LFRs and aggressive promotions during the festive season to accelerate its growth in the country.
It is to be noted that Apple currently assembles iPhone 12, iPhone 13, iPhone 14 and iPhone 14 Plus in India. As per market analyst Ming-Chi Kuo, Apple aims to ship 40-45% of iPhones from India. India accounted for 10-15% of iPhones' overall production capacity at the end of 2022.
 
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