Foxconn has officially commenced small-scale production of the iPhone 17 at its newly operational plant in Devanahalli, Bengaluru, marking a significant expansion of Apple’s manufacturing footprint in India.
The facility, built with an investment of $2.8 billion (₹25,000 crore), is Foxconn’s second-largest site outside Chinaand complements its ongoing production at the Chennai unit.
Early Challenges and Stabilisation
Initial operations faced hurdles when a number of Chinese engineers unexpectedly returned home, creating short-term disruptions. To stabilize production, Foxconn deployed experts from Taiwan and other regions, ensuring manufacturing momentum was quickly restored.
Apple’s India Manufacturing Strategy
Apple is scaling up its India-based iPhone production to 60 million units in 2025, up from 35–40 million units in FY24–25, according to PTI.
For the financial year ending March 2025, Apple assembled iPhones worth $22 billion in India — a 60% increase from the previous year — highlighting the country’s growing importance in Apple’s global supply chain.
Role in Global Supply
In the June 2025 quarter, Apple CEO Tim Cook confirmed that most iPhones sold in the US were now manufactured in India. With U.S. iPhone sales reaching 75.9 million units in 2024, Apple is increasingly relying on Indian production to support global demand.
Exports from India hit 3.1 million units in March 2025, reinforcing the need for additional capacity from the new Bengaluru facility.
Performance in the Indian Market
Apple’s domestic shipments also continue to grow:
- 5.9 million units shipped in H1 2025 (+21.5% YoY).
- The iPhone 16 was the top-shipped model.
- Q2 2025 shipments rose 19.7% YoY, securing 7.5% market share.
Despite the growth, Apple still trails behind Vivo, which led the Indian smartphone market with 19% share, according to IDC.
Strategic Outlook
The launch of production at the Bengaluru facility not only strengthens Apple’s India-to-global supply chain but also signals a long-term commitment to diversifying away from China. With rising exports and steady domestic growth, India is now positioned as a critical hub in Apple’s global iPhone strategy.
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