Media365
Apple ’s plan to kick off the AirPods production in India through its supplier Foxconn sparked speculation about a significant price cut. However, per industry sources, while price cuts are unlikely, Apple may take an indirect route to offer steep discounts on the Made in India AirPods to appeal to more customers as it seeks to expand the market share of its wireless earphones.
“There will not be a drop in list prices,” said one of the sources, highlighting how “attractive promotions and discounting” could help Apple position AirPods as affordable devices across channels.
AirPods already leads the category with a 23.1 per cent market share globally, with Samsung holding the second position with an 8.5 per cent share. However, AirPods’ share in India’s TWS (truly wireless stereo) market is indiscernible as local brands such as boAt, Noise, and Boult Audio have captured vast user bases.
While the initially manufactured AirPods units are expected to be assigned for exports, later batches may be released into the Indian market. Sources told Republic Tech that Apple may start selling locally-produced AirPods in India as early as the second or third batch. According to PTI, the first or subsequent batches will be exported to markets such as the United States and Europe.
The decision to export the initial batches of Made in India AirPods units fits Apple’s strategy, which involves scaling up the production before the rollout in the local markets. “Like smartphones, for scaling, exports will be the go-to strategy. In the near term, they might only export the AirPods but going forward the locally manufactured shipments will be utilised for local consumption as well,” said Prachir Singh, Senior Research Analyst at Counterpoint Research.
The AirPods production may begin at Foxconn’s freshly inaugurated Hyderabad facility, which was built as part of the Taiwanese manufacturer’s $400 million (roughly 3,325 crore) into India as iPhone production picks up steam. Foxconn, alongside Tata Electronics — which acquired Wistron’s facilities wholly and a 60 per cent stake in Pegatron, assembles the latest models such as iPhone 16e, iPhone 16 Pro, and iPhone 16.
The move comes days after Apple announced an investment of $500 billion in the US to ramp up research and development (R&D) and production of components. However, the plan to expand manufacturing lines in India is part of Apple’s strategy to diversify its supply chains. “It is good to see Apple’s commitment in India developing beyond the iPhone. This means India deeply getting integrated into Apple’s supply chain for the entire ecosystem,” Mohammad Faisal Kawoosa, Chief Analyst at TechArc, told Republic Tech.
Apple launched the AirPods 4 alongside the iPhone 16 series in September last year for a starting price of ₹12,900.
