Skip to content 
Search

Latest Stories

Apple could turn to China following fire at Tata plant in India: Report

The fire over the weekend has led to an indefinite halt in production at Tata's Hosur plant in Tamil Nadu.

Vehicles pass through the security check at the entrance of Tata Electronics Plant in southern India which makes Apple iPhone component in Hosur, Tamil Nadu. (Photo: Reuters)
Vehicles pass through the security check at the entrance of Tata Electronics Plant in southern India which makes Apple iPhone component in Hosur, Tamil Nadu. (Photo: Reuters)

A FIRE at Tata Group's Apple iPhone component plant in southern India may disrupt production ahead of the upcoming festive season, potentially pushing Apple’s suppliers to source critical parts from China or other locations, according to an industry analyst and a source familiar with the matter.

The fire over the weekend has led to an indefinite halt in production at Tata's Hosur plant in Tamil Nadu. This facility is the only Indian supplier of iPhone back panels and some other parts for both Foxconn and Tata’s own iPhone assembly at another location.


Hong Kong-based Counterpoint Research told Reuters that it estimates local sales of 1.5 million units of iPhone 14 and 15 models during the Indian festive season, which runs from late October to early November. The fire could make it difficult for Apple to meet up to 15 per cent of this demand.

"There will be a 10-15 per cent 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," said Neil Shah, co-founder of Counterpoint, which tracks Apple’s global shipments.

Apart from local sales, Tata also exported iPhones to the Netherlands and the US, as well as some parts to China, amounting to over £187.5 million in exports for the year ending August 31, based on available customs data.

Tata declined to comment on the situation.

Counterpoint Research noted that Apple’s suppliers generally carry a three- to four-week stock of back panels. However, an industry source familiar with the matter estimated that Apple likely has stock for up to eight weeks, minimising the immediate impact of the fire.

If the suspension continues for an extended period, Apple may consider setting up another assembly line in China or adding shifts there to secure parts for its Indian iPhone manufacturers, the source added.

This disruption highlights the broader challenges facing Narendra Modi's "Make in India" initiative, especially in electronics manufacturing. Apple has been diversifying its supply chain beyond China, but recent incidents in India, such as fires at Foxlink and Pegatron last year, caused brief production halts.

“These are temporary setbacks,” said Prabhu Ram, vice president at Cybermedia Research. “Continued efforts to improve safety and operational standards are crucial for strengthening India's position as a global electronics manufacturing hub.”

Tata is one of Apple’s newest suppliers in India, with analysts predicting that India will account for 20-25 per cent of global iPhone shipments this year, up from 12-14 per cent last year. The fire-hit plant employed 20,000 workers. Another unit in the same complex was set to begin manufacturing complete iPhones later this year, but it remains unclear if the fire will delay these plans.

Tata has another iPhone plant near Bengaluru, acquired from Wistron last year, and is set to acquire a second plant in Tamil Nadu from Pegatron.

(Reuters)

More For You

Bangladesh seeks US deal to shield garment industry from tariffs

Workers are engaged at their sewing stations in a garment factory in Savar, on the outskirts of Dhaka, on April 9, 2025. (Photo by MUNIR UZ ZAMAN/AFP via Getty Images)

Bangladesh seeks US deal to shield garment industry from tariffs

BANGLADESH, the world's second-biggest garment manufacturer, aims to strike a trade deal with the US before Donald Trump's punishing tariffs kick in next week, said the country's top commerce official.

Dhaka is proposing to buy Boeing planes and boost imports of US wheat, cotton and oil in a bid to reduce the trade deficit, which Trump used as the reason for imposing painful levies in his "Liberation Day" announcement.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Bond yields ease following Starmer’s support for Reeves

THE COST of UK government borrowing fell on Thursday, partially reversing the rise seen after Chancellor Rachel Reeves became emotional during Prime Minister’s Questions.

The yield on 10-year government bonds dropped to 4.55 per cent, down from 4.61 per cent the previous day. The pound also recovered slightly to $1.3668 (around £1.00), though it did not regain all its earlier losses.

Keep ReadingShow less
modi-trump-getty
Modi shakes hands with Trump before a meeting at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)
Getty Images

Indian exporters watch closely as Trump says trade deal with India likely

THE US could reach a trade deal with India that would help American companies compete more easily in the Indian market and reduce tariff rates, President Donald Trump said on Tuesday. However, he cast doubt on a similar deal with Japan.

Speaking to reporters on Air Force One, Trump said he believed India was ready to lower trade barriers, potentially paving the way for an agreement that would avoid the 26 per cent tariff rate he had announced on April 2 and paused until July 9.

Keep ReadingShow less
Kolhapuri sandal sales surge in India post Prada controversy

Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi

Kolhapuri sandal sales surge in India post Prada controversy

INDIAN footwear sellers and artisans are tapping into nationalist pride stoked by the Prada 'sandal scandal' in a bid to boost sales of ethnic slippers with history dating back to the 12th century, raising hopes of reviving a struggling craft.

Sales are surging over the past week for the 'Kolhapuri' sandals that have garnered global attention after Prada sparked a controversy by showcasing similar designs in Milan, without initially crediting the footwear's origins.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Economy grew 0.7 per cent in Q1 2025, fastest in a year

THE UK economy expanded at its fastest pace in a year during the first quarter of 2025, driven by a rise in home purchases ahead of a tax deadline and higher manufacturing output before the introduction of new US import tariffs.

Gross domestic product rose by 0.7 per cent in the January-to-March period, the Office for National Statistics (ONS) said, confirming its earlier estimate. This was the strongest quarterly growth since the first quarter of 2024.

Keep ReadingShow less