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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