![](\"\/\/im.rediff.com\/money\/2023\/sep\/27pegatron.jpg?w=670&h=900\")
<\/p>\nEven as top Pegatron executives went to the factory near Chennai on Tuesday to make an assessment of the fire damage to decide on a possible date for resuming operations, sources said the impact of the closure will be minimal for Apple’s iPhone production.<\/p>\n
<\/p>\n
Late in the evening sources said that the factory might be operational soon-but said they are waiting for a final update.<\/p>\n
It will also not impact the availability of the newly-launched iPhone 15 and iPhone 15 Plus, they said.<\/p>\n
Pegatron, which is one of the three vendors making iPhones, had to close operations from Sunday night after a fire broke out in its factory.<\/p>\n
On Monday, the local police as well as the fire department also came to check the damages.<\/p>\n
Those assessing the ramifications of the production hit, estimate that the impact would be 0.1 per cent of the total annual iPhone production if the factory remains closed for 4-5 days.<\/p>\n
The figure could increase if there’s a further delay in resuming production.<\/p>\n
Pegatron is the smallest iPhone assembler, with Foxconn Hon Hai being the dominant player, handling approximately 50 per cent of the iPhone assembly in India.<\/p>\n
Currently, Foxconn is the sole producer of the newly-launched iPhone 15 and 15 Plus models in India.<\/p>\n
On the other hand, Pegatron has focused on assembling older iPhone models, including the iPhone 13 and 14, according to sources.<\/p>\n
Sources also point out that there is enough stock available to ensure there is no disruption.<\/p>\n
Counterpoint data indicates that Pegatron assembles about 10 per cent of the iPhones in the country, although other sources suggest a larger share.<\/p>\n
In terms of exports as well, Pegatron trails.<\/p>\n
S&P Global data reveals that it exported iPhones worth $1.36 billion in 2022-23 (FY23), compared to $2.06 billion by Foxconn and $1.98 billion by Wistron.<\/p>\n
Pegatron’s share of total exports stands at a mere 25 per cent.<\/p>\n
The fire was discovered on Sunday night and Pegatron issued a statement on Monday.<\/p>\n
It said there was a “spark incident” that will not have a significant financial or operational impact.<\/p>\n
Sources said even if all the three suppliers had similar capacities, the fire’s impact would not exceed 0.36 per cent of India’s total iPhone production.<\/p>\n
If the Pegatron’s facility stays closed for seven days, it would affect only 0.6 per cent of the overall production.<\/p>\n
Retailers affiliated to Apple Inc. said that the company maintains a four-week stockpile. So, they foresee no issues.<\/p>\n
This is not the first disruption at an iPhone assembly facility.<\/p>\n
Foxconn also temporarily shut its plants following worker protests due to a food poisoning incident.<\/p>\n