Apple’s iPhone production in India hit a major hurdle following a fire at a Tata Electronics plant. The fire, which occurred over the weekend, will seemingly have a 10-15% impact on the production of older iPhone models in the country.
More importantly, Apple will fall back on its suppliers in China to meet the component shortage.
iPhone production in India to take a major hit due to the Tata plant fire
Before COVID, Apple relied heavily on China to manufacture its devices. However, due to the supply-chain disruption caused during the pandemic, the company accelerated its plans to make India a secondary production hub.
The Tata plant at Hosur, Tamil Nadu, made iPhone back panels and other components. It exclusively supplied Foxconn and its own iPhone assembly factory with these items. The fire at Tata’s plant will reportedly force Apple to fall back on China for sourcing these components.
The incident happened ahead of the crucial festive season in India, where iPhones are typically in high demand.
Counterpoint Research’s co-founder Neil Shah told Reuters that the indefinite factory shutdown could have a “10-15% impact on production of older iPhone models from India. Apple could offset that impact by importing more components, and by re-routing more export inventory towards India.”
Apple may ask its Chinese suppliers to step up
The same report, citing a source, claims Apple has about eight weeks’ stock of the components. This will ensure there’s no immediate impact on production. However, if the factory does not return online in a month or so, Apple will supposedly ask its suppliers in China to set up another production line there.
Indian authorities will investigate the fire, with early reports suggesting the fire caused extensive damage to the plant.
This is not the first time that one of Apple’s supplier factories in India caught fire. In 2023, a Pegatron factory in the country making iPhone components caught fire after a worker apparently failed to turn off a switch at the end of the day, causing a short circuit.
