MC EXCLUSIVE Apple’s iPhone 17 series production in India goes full throttle; local factories gear up to meet US, Europe demand

Apple’s iPhone 17 series production in India goes full throttle; local factories gear up to meet US, Europe demand

Apple’s big bet on India is hitting full throttle. From Tamil Nadu to Karnataka, a sprawling network of five factories—including Tata’s gleaming new Hosur plant and Foxconn’s massive 300-acre hub near Bengaluru airport—is now churning out the latest iPhones for the world.

The lineup includes the iPhone 17 Pro, assembled at Foxconn and Tata-run Pegatron units, along with the iPhone 17 base model. Tata’s Wistron facility in Karnataka and the newest Hosur facility in Tamil Nadu are also contributing to iPhone 17 base model production.
Apple’s slimmest handset yet, the iPhone Air, is currently manufactured by Foxconn in Sriperumbudur.

Much of this production is aimed at meeting soaring demand in the US and Europe while catering to India’s own growing appetite, sources told Moneycontrol.

Foxconn subsidiary Hon Hai’s newest Bengaluru facility, which began test runs of Apple’s newest model in April, has already become India’s largest iPhone factory in terms of installed production capacity. While its scale dwarfs that of Apple’s other suppliers in India, such as Tata Electronics, Wistron (now owned by Tata), and Pegatron, output here will ultimately be tied to global demand for iPhones, sources said.

US and Europe to lead iPhone India exports

Sources added output across these factories will be ramped up further in the coming week, guided by pre-orders pouring in from India, the US, and parts of Europe.

These factories are already producing older smartphone series of iPhone 14, iPhone 15 and iPhone 16.

India has quickly transformed into a crucial hub for Apple. Nearly half the iPhones sold in the US are now made here, and for the first time, India-made iPhones are available globally on day one of sales, instead of trailing behind Chinese shipments. The impact is visible in export numbers: smartphone shipments from India surged 30% year-on-year in H1 2025 to 40 million units, driven largely by iPhones heading to the US.

The rush followed Washington’s Q1 tariff announcement, which prompted Apple to front-load shipments ahead of potential cost escalations, according to Counterpoint.

“In the second half, we are expecting it to grow, especially with an overall increase in the new 17 series of iPhones. The US was the top destination for India’s smartphone exports in H1 2025, accounting for 54% of total shipments, up from 30% in H1 2024. This number will cross 60% in the second half,” Tarun Pathak, research director at Counterpoint Research, told Moneycontrol.

Pathak added that shipments to Europe dipped in the first half as Apple redirected volumes to the US to offset tariff impacts. “With the new launches, the contribution to Europe will also increase significantly,” he said. “Apple has built massive capacity at the India factories of Foxconn and Tata, and it will take time till they get maxed out.”

Higher iPhone 17 prices won’t slow Apple’s iPhone momentum

Though the iPhone 17 series comes at a higher price than its predecessor, the iPhone 16 series, analysts don’t expect demand to take a hit.

“Around 60–65% of iPhone sales in India happen on EMI, so any price hike gets absorbed. Add bank offers and trade-ins, and affordability improves further. The hike won’t stop users from upgrading,” Pathak noted.

For Apple, this year marks its widest-ever iPhone portfolio in India. Alongside the new iPhone 17 lineup, older models like the iPhone 14 and iPhone 15 remain in play, while the iPhone 16 and 16e extend the range even further.

Analysts also see strong interest building around the newly launched iPhone Air. “There are design enthusiasts who will go for it, but those who want cameras will only consider the Pro models. iPhone Air is unlike any other iPhone before, and that uniqueness will be its USP,” Pathak added.

Moneycontrol on September 8 reported that Apple is pressing ahead with a major scale-up in India, expanding iPhone and AirPods manufacturing capacity and pushing suppliers to localise more components despite mounting pressure from US President Donald Trump to restrict its Indian presence.

Apple has been working closely with both central and state authorities to expand local sourcing, as it seeks higher domestic value addition under the government’s electronics components scheme. The iPhone maker is nudging more suppliers from China, Japan, Taiwan and elsewhere to establish factories in key states like Tamil Nadu, Telangana and Karnataka.