Once the US understood that China was becoming more powerful in terms of manufacturing facilities and advanced technologies, it began doing its best to make China out of the competition. It’s still foggy whether the US will succeed. But what it is doing now is to move productions from China to other East Asian countries. Apple is one of the frontrunners. The Cupertino-based company commenced making iPhones in India long ago. Now, it’s the turn of the AirPods and Beats headphones.
The Decision Has Roots
In fact, until today, Apple orders the production of AirPods to Foxconn and Luxshare. Today, the company instructed both manufacturers to move some of their assembly work to India. Of course, this is a serious challenge even for Apple. But it’s also a top priority.
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Further reading: Google Plans To Make Pixel Smartphones In India
For those who are unaware, long ago, Apple chose China as its manufacturing base. Even earlier, in the 1980s, the Chinese government decided to make the Shenzhen area the manufacturing center of the tech world. For this goal, the gov began running relaxed planning regulations and generous tax incentives for manufacturers. Plus, China took specific measures to maximize the appeal of foreign companies.
In effect, China, particularly Shenzhen, has become the place where tech companies can find and order everything. The supply chains have been working smoothly without causing any trouble to the companies.
That’s why it’s not easy to reduce dependence on China if you have been in the tech market for a long time. For instance, a recent analysis showed that if Apple wants to reduce its dependence on China by 10%, it will take more than eight years.
AirPods and Beats Headphones Are Manufactured in Vietnam As Well
By the way, Apple has already moved a huge part of AirPods and Beats production from China to Vietnam. Moreover, the latest report shows that Vietnam already makes most Apple headphones.
Lastly, we should recall that India has already considered Apple’s second major manufacturing hub. This country will be responsible for a full quarter of iPhone production by 2025.