Production at the Indian iPhone factory suspended indefinitely after fire, Apple may rely on Chinese supply chain again
An iPhone component factory in India has indefinitely suspended production due to a fire, forcing Apple to rely on its supply chain in China again. The fire occurred at a factory owned by Tata Electronics, resulting in at least 10 injuries. The factory was originally scheduled to produce complete iPhones in the coming months, but the fire may cause Apple to lose about 15% of its demand, leading to a stock price drop of over 3%
According to sources familiar with the matter, after a fire at an iPhone component factory in India over the weekend resulted in an indefinite suspension of production, Apple (AAPL.US) had to rely on China again.
Last Saturday local time, a fire broke out at an iPhone component factory in Hosur, Tamil Nadu, India, owned by Tata Electronics, leading to at least 10 people receiving treatment, with 2 hospitalized. Indian officials stated on Monday that the factory would indefinitely suspend production after the weekend fire, and measures would be taken to prevent further damage caused by the fire. The factory had originally planned to produce complete iPhones in the coming months.
The factory produces key back panels and other components for iPhones. In the same industrial park, another building was set to start assembling iPhones by the end of the year, but it is currently unclear if it has been affected.
Senior health official Shilpa Prabhakar Satish of India stated during a visit to the factory on Sunday that the factory "burned severely, (the inside) cannot be seen at all. The building is collapsing, the roof is collapsing, and no one can enter."
Tata Electronics, a subsidiary of the $165 billion Tata Group in India, is one of Apple's major suppliers in India.
Research firm Counterpoint stated that during the holiday period from late October to early November, India was expected to sell approximately 1.5 million units of iPhone 14 and iPhone 15. With the occurrence of the fire, the research firm believes that Apple may ultimately lose about 15% of the demand.
On Tuesday, Apple's stock price fell by over 3%, with Barclays previously releasing a research report suggesting that Apple may reduce production of the iPhone 16