Apple supplier Foxconn wins AirPods order, plans $200m factory in India | – #Apple #supplier #Foxconn #wins #AirPods #order #plans #200m #factory #India
TAIPEI, March 16 (Reuters) – Taiwanese contract manufacturer Foxconn ( 2317.TW ) Apple Inc ( AAPL.O ) has won an order to manufacture AirPods and plans to set up a factory in India to produce the wireless headphones. informed the Reuters agency about the issue.
The deal will see Foxconn, the world’s largest contract electronics manufacturer and the assembler of around 70% of all iPhones, become the AirPods supplier for the first time, and the main Apple highlights efforts to further diversify its supplier’s manufacturing outside of China. AirPods are currently made by a number of Chinese suppliers.
Foxconn to a new Indian AirPod plant in the southern Indian state of Telangana, a source said 20It will invest more than 0 million dollars. It wasn’t immediately clear how much an AirPods order would cost.
The person, who requested anonymity because the matter has not yet been made public, said Foxconn officials debated internally whether to stock up on AirPods because of the relatively low profit margins in device production, but ultimately decided to go ahead with the deal to “strengthen.” “Apple mark with”.
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“So we will get more orders for their new products,” the person said.
According to the source, the decision to set up production in India was requested by Apple.
Foxconn is competing with Taiwanese rivals Wistron Corp ( 3231.TW ) and Pegatron Corp ( 4938.TW ) to win more orders than Apple, the world’s most valuable company.
Its subsidiary, Foxconn Interconnect Technology Ltd, said it plans to start construction of a manufacturing facility in Telangana in the second half of this year and start production by the end of 2024 at the earliest.
Shares of the Foxconn unit rose nearly 9% after Reuters first reported the news, reversing an earlier loss of 2.2%. Foxconn’s own shares rose 0.5%, while the Taipei benchmark (.TWII) fell 1.1%.
A second person with direct knowledge of the matter, who declined to say the matter had not yet been made public, said the Foxconn subsidiary will manufacture AirPods in India, without providing further details.
Analysts have previously said Apple has asked suppliers including Foxconn to manufacture AirPods in India, but details such as the size of the investment, the timeline and which suppliers have plans to manufacture in the country have not been disclosed.
Foxconn declined to comment. Apple did not immediately respond to a request for comment.
Apple and its key suppliers are shifting production away from China, where strict COVID-19 restrictions disrupted Foxconn’s largest iPhone factory last year. They are also Chinese-USA they seek to avoid the potential impact on business of increased trade frictions.
Foxconn said on Wednesday it will increase investment outside China to meet customer demand and reduce its dependence on China for production.
It was not immediately clear whether Foxconn’s production plan would affect current AirPods suppliers, including Luxshare Precision Industry ( 002475.SZ ).
Luxshare did not immediately respond to Reuters’ request for comment.
Goertek Inc ( 002241.SZ ), another supplier, said in November that an overseas customer asked it to stop assembling a smart acoustic product that analysts identified as the AirPods Pro 2 at the time, and that the shutdown would hit revenue. 3.3 billion yuan (480 million dollars).
Goertek did not respond to a request for comment.
($1 = 6.8864 Chinese Yuan Renminbi)
Reporting by Yimou Lee; Adding by Munsif Vengattil in New Delhi and Josh Horwitz in Shanghai report; Edited by Miyoung Kim and Kenneth Maxwell
Our standards: Thomson Reuters Trust Principles.
2023-03-16 09:03:42
Source – reuters
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