Foxconn wins first AirPods order, plans new factory

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Six years and six months since AirPods were launched, Apple’s biggest supplier Foxconn finally gets to make them.

According to Reuters, Foxconn plans to build a $200 million factory in India, specifically to make AirPods. Apple has already had some AirPod components made in India, as part of its move to reduce reliance on China, but so far Foxconn has not been involved.

Neither Apple nor Foxconn have confirmed the story, but Reuters cites two unnamed sources, reportedly with direct knowledge of the deal. One of the sources said that Foxconn’s investment in India will be with a new factory in southern Indian state of Telangana.

The same source also said both that the total investment would exceed $200 million — and also that Foxconn had been hesitant about taking Apple’s order. Reportedly officials debated for some months because the profit margin on AirPods is low compared to other devices the company manufactures.

However, the firm decided to take on the AirPods order specifically to “reinforce engagement” with Apple, said the source.

AirPods were first released in 2016, and until now have been exclusively made using various suppliers in China.