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Apple Supplier Jabil Starts Making AirPods Components In India, Reduce Dependence On China

  • Key Apple Inc (NASDAQ: AAPL) supplier Jabil Inc (NYSE: JBL) has begun making components for AirPods in India, making way for the partial manufacture of Apple's second product after iPhone.

  • Jabil's Indian division has started shipping AirPods enclosures, or plastic bodies, to China and Vietnam, where Apple assembled the wireless earphones, Bloomberg reports.

  • Apple aggressively focused on reducing its reliance on China, hammered by U.S. trade restrictions and Covid-related disruptions.

  • Also Read: Apple Anticipates India Production Share To Rise 25% In Attempt To Diversify Base Beyond China

  • India had already prioritized financial incentives and government support for companies' expansion projects, with Apple playing a pivotal role.

  • Apple shipped 23.8 million units of AirPods in the third quarter for a 31% market share, according to Canalys.

  • Jabil operates an 858,000 square foot (80,000 square meters) facility employing more than 2,500 workers in Pune, western India.

  • New Delhi offered a green signal to more than a dozen of Apple's Chinese suppliers to ramp up AirPods production via joint ventures with Indian partners.

  • Price Action: AAPL shares closed higher by 1.37% at $145.93 on Friday.

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This article originally appeared on Benzinga.com

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