The company has also created a custom design for cases to be used with the iPhone 5 and Android-based phones.
The primary objective of the "Smart Phone Smart Fun" policy is to keep staff updated about the latest technology and collect supply feedback.
"Employees across Yahoo can now choose any phone — it's an open offer to choose any latest handset — as we want our employees to have devices similar to what our users are using globally," said Aniruddha Banerjee, head, human resources, Yahoo in India. "We understand that in order to succeed, Yahoo will predominantly have to be a mobile company. So, we need to help our employees develop the right skills around building mobile applications."
The company expects the number of mobile Internet users in India to go up to 300 million by 2015 from the current 180 million.
Globally, Yahoo has launched a weather app for the iPhone and an email app for tablets — its first new mobile products under CEO Marissa Mayer's leadership.
Employee headcount at Yahoo India's Bangalore office stands at 2,000 and is the second-largest centre after its headquarters in the US.