Bengaluru, August 17: Taiwanese electronics giant Foxconn has started small-scale production of the iPhone 17 at its Devanahalli facility near Bengaluru, sources confirmed. The plant, set up with an investment of nearly USD 2.8 billion (₹25,000 crore), is Foxconn’s second-largest iPhone manufacturing unit outside China.
The Bengaluru unit supplements output from Foxconn’s Chennai plant. Although initial production faced a short delay when hundreds of Chinese engineers returned abruptly, the company quickly filled the gap by bringing in experts from Taiwan and other regions.
According to sources, Apple aims to increase iPhone production in India to 60 million units in 2025-26, up from 35–40 million units in 2024-25. This aligns with Apple’s strategy of diversifying its supply chain beyond China.
India’s importance to Apple has grown significantly. In FY25, Apple assembled 60% more iPhones in the country, valued at about USD 22 billion. CEO Tim Cook revealed during the July earnings call that most iPhones sold in the US in June 2025 were India-made, marking a milestone for Apple’s global operations.
Industry analysis by S&P Global indicates Apple must nearly double shipments from India to meet US demand, either through expanded capacity or reallocating domestic supply.
Meanwhile, Apple’s presence in India’s smartphone market continues to strengthen. iPhone shipments rose 21.5% in H1 2025 to 5.9 million units, with the iPhone 16 leading sales. In Q2 2025, Apple captured a 7.5% market share, while Vivo led overall sales with 19%, according to IDC.