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Apple's Key Supplier Wins Airpod Order – Plans To Build $200M Plant In India

Apple Inc‘s (NASDAQ:AAPL) oldest and largest supplier plans to build a factory in India to produce wireless earphones after winning an order from the Cupertino-based tech giant.

What Happened: Taiwan's contract manufacturer Hon Hai Precision Industry Co. Ltd. (OTC:HNHPF), known as Foxconn, won an order from Apple to make AirPods, two sources familiar with the matter told Reuters.

Apple and Foxconn did not immediately respond to Benzinga’s request for comment.

See Also On Benzinga India: Chinese Phone Makers May Soon Be Forced To Let Users Delete Pre-Installed Apps

The report added that Foxconn — the largest maker of electronic goods on a contractual basis and responsible for assembling nearly 70% of iPhones — has entered into an agreement to supply AirPods for the first time.

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This deal points to endeavors of the key Apple supplier to diversify its production away from China to India after a recent supply chain disruption. Currently, AirPods are being produced by several other Chinese suppliers, including Luxshare Precision Industry.

A source revealed that Apple requested the decision to set up production in India.

Foxconn will invest more than $200 million in the new India AirPod plant in the state of Telangana, it said. Details about the project’s worth weren't mentioned in the report.

Check Benzinga’s coverage of the Indian stock market and economy by following this link.

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This article Apple's Key Supplier Wins Airpod Order – Plans To Build $200M Plant In India originally appeared on Benzinga.com

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