Apple Inc is asking its suppliers to move some AirPods and Beats headphone production to India for the first time, Nikkei reported on Wednesday, in what could be an another win for New Delhi in its push for local manufacturing.

Apple iPhone assembler Foxconn is preparing to make Beats headphones in India and hopes to eventually produce AirPods in the country as well, the report said, citing sources.

Luxshare Precision Industry, a Chinese supplier to the iPhone maker, and its units also plan to help Apple make AirPods in India, according to the report.

However, Luxshare is focusing more on its Vietnamese AirPods operations for now and could be slower than its competitors in starting meaningful production of Apple products in India, the Nikkei newspaper said.

The tech giant has been shifting some areas of iPhone production from China to other markets, including India, where it started manufacturing iPhone 13 earlier this year, and is also planning to assemble iPad tablets. The company announced last week its plans to manufacture the latest iPhone 14 in India. A Bloomberg News report from Tuesday said iPhone exports from India crossed $1 billion in five months since April and are set to reach $2.5 billion in the 12 months through March 2023.

Apple’s latest move is part of its gradual diversification from China, the Nikkei report said. India and other countries such as Mexico and Vietnam are increasingly turning important to contract manufacturers supplying to American brands amid Covid-related lockdowns in China and simmering tensions between Washington and Beijing.

iPhone exports

Apple iPhone exports from India have more than doubled since April, surpassing $1 billion, as the tech giant continues to boost its output from the country and India gains footing as a global electronics manufacturing hub, Bloomberg reported.

The news outlet, citing people familiar with the matter, noted that the India-made iPhones have gone mostly to Europe and West Asia. iPhone exports would surpass $2.5 billion through March 2023, the people added. Late last month, Apple confirmed that it would make its iPhone 14 in India, as the US-based tech giant diversifies production of its iconic device away from China amid Covid19 lockdowns and increased geopolitical tensions.

“The new iPhone 14 lineup introduces groundbreaking new technologies and important safety capabilities,” Apple said in a statement at the time. “We’re excited to be manufacturing iPhone 14 in India.”

The newest model iPhone is being manufactured by Foxconn and assembled in Chennai, India. Apple has been producing iPhone units in India since 2017, when it started with the iPhone SE.