The desire to move production out of China for various products has been Apple’s goal for quite some time, though it is never an easy task to switch supply chains on such short notice. A new report believes that AirPods and Beats will likely be made elsewhere, though it is not possible to reduce dependency on China this early.
Apple Hopes to Commence Production of AirPods, Beats Products by as Early as 2023
Moving AirPods and Beats production out of China will be an arduous task, but according to Nikkei Asia, the company has already informed suppliers to prep for the shift. The report states that production is expected to be moved to India, where Apple is known for mass-producing iPhones, including the iPhone 14 family. Foxconn, Apple’s chief assembling partner, has reportedly been aware of this plan and intends to start producing Beats products soon.
Later, the supply chain giant is expected to add AirPods to its list. Another partner, Luxshare, is said to be involved in this plan. For those that do not know, Luxshare already makes AirPods in Vietnam, a region to which Apple intends to add more products in the future, including iPads. However, Luxshare is said to be moving at a slower pace than Foxconn in establishing its production bases in India.
Earlier, the plan to set up production plants in India was to sell those particular devices in the country. Now, this country will serve as an export base and, as a result, will improve employment in India while adding to its economy. Given that skilled labor is available in droves there, Apple should have no problem adding production of various products, including AirPods and Beats, though the overall output may suffer since Apple has depended on China for years.
Unfortunately, a series of events has forced Apple’s hand, such as disruptions caused by COVID-19, which forced production facilities to be quarantined and temporarily shut down, not to mention growing tensions between China and the U.S. In these events, having backup plans is a gold-standard approach and Apple appears to be following them to the letter.
News Source: Nikkei