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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