A fire at Tata Group’s iPhone component plant in southern India has forced an indefinite production halt, potentially impacting Apple’s supply chain ahead of the festive season sales surge. The blaze at the Hosur plant in Tamil Nadu, which is the only Indian supplier of iPhone back panels and other parts, threatens to disrupt production for both Foxconn’s assembly lines in India and Tata’s own iPhone manufacturing operations at another facility.
According to Hong Kong-based Counterpoint Research, local sales of iPhone 14 and 15 models are projected to reach 1.5 million units during India’s festive season, running from late October to early November. However, the fire may cause Apple to fall short of fulfilling up to 15% of this demand, with a potential 10-15% impact on production of older iPhone models.
Neil Shah, co-founder of Counterpoint, said Apple could mitigate the shortfall by importing more components or diverting export inventory to India. Tata also exported iPhones to markets such as the U.S. and Netherlands, and parts to China, with exports exceeding $250 million in the year to August 31, according to customs data.
While Apple’s suppliers typically maintain a stock of back panels for 3-4 weeks, an industry source estimated Apple’s current supply could last for up to eight weeks, allowing the company time to seek alternatives. If the shutdown persists, Apple may shift production to China to secure parts for Indian manufacturing.
The incident raises concerns about Prime Minister Narendra Modi’s “Make in India” initiative, which aims to attract foreign investment to the electronics sector. Recent supply chain disruptions, including earlier fires at Foxlink and Pegatron, have marred India’s ambitions to become a global electronics manufacturing hub.
Prabhu Ram, Vice President at Cybermedia Research, described the fire as a temporary setback but emphasized the need for improved safety measures to solidify India’s position in the global electronics market.
Tata, one of Apple’s newest suppliers in India, has declined to comment. The fire-hit facility employed 20,000 workers, and another plant in the same complex was set to start full iPhone production later this year. It is unclear whether the fire will delay these plans.
