Business Standard

The disruption on the Pegatron manufacturing facility is unlikely to influence iPhone manufacturing in India

Pegatron, one among Apple Inc’s three suppliers, has discontinued In India, iPhone manufacturing was halted at its manufacturing facility in Chennai on Sunday night after a minor hearth. Nevertheless, this determination is unlikely to considerably influence iPhone manufacturing within the nation. That is additionally not anticipated to influence the supply of the newly launched iPhone 15 and iPhone 15 Plus.

In accordance with sources who’ve assessed the ramifications of a quick manufacturing halt, the disruption is estimated to quantity to at most 0.1 % of whole annual iPhone manufacturing from its suppliers if the manufacturing facility stays closed for 4-5 days. The quantity might rise if there’s a larger delay in resuming manufacturing.

Pegatron is the smallest iPhone assembler, with the Foxconn Hon Hai facility being the dominant participant, dealing with almost 50 % of iPhone meeting. At the moment, Foxconn is the only real producer of the newly launched iPhone 15 and 15 Plus fashions in India.

Pegatron, however, has targeted on assembling older iPhone fashions, together with the iPhone 13 and 14, in response to knowledgeable sources. Counterpoint information suggests the corporate assembles about 10 % of iPhones within the nation, although different sources counsel a bigger share.

Learn additionally: Blinkit delivers iPhone 15 and iPhone 15 plus inside quarter-hour

When it comes to exports too, Pegatron lags behind. S&P International information reveals that it exported $1.36 billion value of iPhones in FY23, in comparison with $2.06 billion for Foxconn Hon Hai and $1.98 billion for Wistron. Because of this, its share of whole exports doesn’t exceed 25 %.

The hearth, which was found on Sunday night, led to the manufacturing facility being quickly closed. Though no particular timeline has been set for the resumption, Pegatron issued an announcement Monday saying there was a “spark incident” that will not have a major monetary or operational influence.

Sources say that even when the three suppliers had related capabilities, the influence of the fireplace wouldn’t exceed 0.36% of whole iPhone manufacturing in India. If the Pegatron facility stays closed for seven days, it is going to have an effect on solely 0.6 % of whole manufacturing.

Apple Inc. retailers took discover. The corporate maintains 4 weeks’ value of inventory, so they do not anticipate any issues.

This isn’t the primary disruption on the iPhone meeting facility. Foxconn additionally quickly closed its factories after employee protests on account of a meals poisoning incident.

(Tags for translation) Pegatron Manufacturing facility

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