In a first, Apple is asking its suppliers to move some AirPods and Beats production to India. This follows the consumer electronics giant’s recent indication at diversifying its supply chain.

This move comes after Apple began manufacturing its latest iPhone model at its Indian facilities within three weeks of its Chinese suppliers starting to make it.

This move could be a win for the Centre, which has been asking global technology giants to localise their supply chains to India. Apple has also been looking to diversify its supply chain away from China.

According to reports, Apple supplier Foxconn is preparing to make Beats headphones in India and hopes to make AirPods in the country as well.

Luxshare Precision Industry, a Chinese supplier to the iPhone maker, plans to help in the manufacture of AirPods in India.

Foxconn is a beneficiary of the production linked incentive (PLI) scheme. Foxconn has just completed its first year under the PLI.

While India has traditionally been a low volume market for Apple, experts predict that the iPhone maker will achieve its best ever performance with its latest release — iPhone 14. The recent trend of people going premium bodes well for sales. Apple could reach 4 per cent of all phone sales in India this year, according to industry watchers.

Reports also suggest that iPhone exports from India crossed $1 billion in the five months since April. At the current rate, shipments of India-made iPhones, mainly to Europe and West Asia, are set to reach $2.5 billion in the 12 months through March 2023, said some reports.

However, while Apple has started to make headway in localising manufacturing in India, it will take many years and a lot of effort to make Indian manufacturing a serious competitor to China. Last year, India-made iPhones totalled 3 million units, while China delivered over 230 million.