iPhone 17 Production Begins in India: Foxconn’s Bengaluru Plant Takes the Lead, China’s Share in U.S. Imports Shrinks

Apple’s next-generation flagship smartphone, the iPhone 17, has officially entered production in India. According to a report by The Economic Times, Foxconn Apple’s primary manufacturing partner has begun assembling units at its newly developed facility in Bengaluru. This marks a significant milestone for Apple’s ongoing strategy to diversify its supply chain away from China.

India: Apple’s New Manufacturing Hub

Foxconn’s Bengaluru plant, built with an investment of nearly ₹25,000 crore, has quickly become one of Apple’s most important global production sites outside of China. The facility is designed to handle large-scale manufacturing and is expected to play a crucial role in meeting the surging demand for iPhones worldwide.

Until recently, iPhone production faced major disruptions after more than 300 Chinese engineers and technicians, who were responsible for managing advanced assembly lines and worker training in India, were suddenly recalled to China. This unexpected move temporarily slowed down iPhone 17’s production schedule. However, Foxconn quickly filled the gap by bringing in experts from Taiwan and other countries, allowing small-scale production to resume in India.

Why Chinese Engineers Were Critical

Foxconn’s production ecosystem relies heavily on highly skilled Chinese engineers who specialize in running high-tech assembly lines, overseeing factory design, and transferring technical know-how to local Indian workers. To ease this transition, the Indian government even provided visa support for these engineers, ensuring uninterrupted operations at Foxconn’s facilities. However, their sudden withdrawal created short-term challenges. Now, with alternative experts in place, production has restarted, though still at limited capacity.

India Surpasses China in iPhone Exports to the U.S.

One of the most striking developments is that India has now overtaken China as the largest exporter of iPhones to the United States. Research firm Canalys reports that during April June this year, 44% of iPhones imported into the U.S. were manufactured in India. In comparison, China’s share dropped drastically from 61% a year ago to just 25% during the same quarter.

This shift is a clear indication of how geopolitical tensions, tariffs, and supply chain realignments are reshaping global electronics manufacturing. India’s growing role as a production hub demonstrates Apple’s confidence in the country’s ability to handle large-scale, high-tech manufacturing something that was previously dominated by China.

Record iPhone Output in India

Between January and June 2025 alone, Apple manufactured 23.9 million iPhones in India, representing a 53% year-on-year increase compared to the same period last year. Out of these, nearly 22.88 million units were exported abroad, highlighting India’s importance not just as a production base but also as a global export hub for Apple.

For perspective, in January–June 2024, India produced just 15.05 million iPhones. Within a single year, output has grown by more than 52%. Today, almost 78% of iPhones sold in the U.S. are manufactured in India, a remarkable shift in global trade dynamics.

Why Apple is Betting Big on India

Several factors are driving Apple’s deeper push into India:

1. Geopolitical Diversification With trade tensions escalating between the U.S. and China, Apple has been under pressure to diversify its production to reduce reliance on Chinese factories. India offers a stable alternative.

2. Government Support The Indian government’s production-linked incentive (PLI) schemes, easier visa approvals for foreign engineers, and infrastructure push have made India more attractive for global manufacturers.

3. Expanding Consumer Base India is also emerging as a critical consumer market for Apple, with rising incomes and increasing demand for premium smartphones. Manufacturing in India not only reduces costs but also positions Apple to capture domestic growth.

4. Foxconn’s Strategic Investments Foxconn has committed billions of dollars to set up state-of-the-art facilities in India. Its Bengaluru plant is one of the largest outside China and plays a vital role in Apple’s global supply chain.

The Road Ahead

While iPhone 17 production in India has begun, industry analysts note that large-scale output will take time to stabilize, especially since advanced assembly requires highly skilled engineers and precise technology transfers. Nonetheless, Apple’s progress in India signals a long-term shift in global manufacturing power from China to India.

Research firms such as Canalys and CyberMedia Research suggest that by 2026, India could account for more than half of Apple’s global iPhone production. This would not only reduce Apple’s dependency on China but also strengthen India’s position as a global electronics manufacturing hub.