A major fire at Tata Group’s iPhone component plant in southern India has forced Apple to consider ramping up production in China once again. The blaze, which occurred over the weekend, has led to an indefinite production halt at Tata’s Hosur plant in Tamil Nadu, the sole Indian supplier of iPhone back panels and other parts. The disruption at the Apple factory could have widespread implications.
The incident comes at quite a crucial time, just ahead of India’s festive season when iPhone sales normally surge. Industry experts estimate that Apple may struggle to meet up to 15% of the demand for iPhone 14 and 15 models during this period, as they’d be the more affordable options. The fire could impact 10-15% of older iPhone model production in India.
Usually, Apple’s suppliers keep a 3 to 4-week supply of back panels in stock. But if the pause in production goes on for too long, Apple might have to look for other options. Sources say that Apple might set up additional assembly lines or increase shifts in China to secure parts for its Indian manufacturers, how the tables have turned.
Despite this incident, India remains a significant player in Apple’s global production strategy, with estimates saying that it will contribute 20-25% of total global iPhone shipments this year.
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