Technical News Office – The fire at Apple’s component manufacturing plant in Hosur, Tamil Nadu has dealt a major blow to Apple’s supply chain. The back panels and other important parts of the iPhone were manufactured in this factory. Production was halted due to the fire, which could impact iPhone sales during the holiday season. After which, it is now being said that Apple may have to import significant parts of the iPhone from China or another country.
The company will sell up to 15% fewer iPhones
Let us tell you that this factory used to supply iPhone parts to iPhone manufacturing companies like Foxconn in India. iPhone production has been affected by the fire, which could reduce production of older iPhone models in India by 10-15%. Demand for iPhones increases significantly during the holiday season, but because of this incident, Apple may have to sell up to 15% fewer iPhones. This factory also exported iPhone parts to the Netherlands, America and China. But now Apple will have to import phone parts from other countries, so production can restart.
What does this incident mean?
This incident was a major blow to the Make in India initiative. Additionally, the pressure on Apple’s supply chain has also increased. iPhone prices could increase. This incident is currently under investigation to determine the reasons. Apple and Tata will try together to restart production. Apple will need to strengthen its supply chain so that such incidents can be avoided in the future.
Apple to build another assembly line in China
According to reports, Apple suppliers typically keep three to four weeks of back panel inventory. However, an industry source close to the matter estimated that Apple probably has eight weeks of stock and that the impact would therefore not yet be visible. However, it is said that if production does not start soon, the American company could set up another assembly line in China.
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