Apple supplier Foxconn has won its first order to produce AirPods, according to sources familiar with the matter, Reuters reported.
A source said Foxconn will invest more than $200 million (currently about RMB 1.38 billion) in a new AirPods assembly plant in the southern Indian state of Telangana. The factory is expected to start construction in the second half of this year and production will begin as early as the end of 2024.
Foxconn debated for months internally about whether to assemble AirPods due to relatively low profit margins, but they ultimately decided to go ahead with the deal to “strengthen the partnership with Apple,” according to the report.
The decision to set up a factory in India was made at Apple’s request, the sources noted. In addition to the factory in Telangana, Foxconn plans to increase its investment in India to produce smartphones, electric cars and semiconductors.
