Apple iPhones usually see a huge demand during the festive season leading up to Diwali.
A recent fire incident at Tata’s iPhone plant in India led to temporary halt in production.
Analysts believe that while there might not be an immediate effect on the shipments, we might see the impact of this incident in early November.
Apple iPhones usually see a huge demand during the festive season leading up to Diwali. It’s also the time when the company offers many discounts and festive offers on the older iPhone models. However, a recent fire incident at Tata’s iPhone plant in India and its aftermath has the potential to dent Apple’s expected India revenue.
The incident led to the temporary halt in production. Analysts believe that while there might not be an immediate effect on the shipments of the iPhone 15 and iPhone 16 models, we might see the impact of this incident in early November.
Minimal immediate impact on iPhone availability
Apple, just like other brands, must have already prepared for the festive season and have enough stock to last the entire month, Amit Sharma, Senior Analyst at CyberMedia Research (CMR), told Digit and Times Network.
“We anticipate minimal immediate impact on iPhone production in India, as smartphone brands typically maintain a stockpile of at least a month especially during the festive season to meet consumer demand. However, if production plants remain closed for an extended period, we could expect some future impact,” he said.
This means that Apple’s stockpile could serve the immediate demand for the festive season, avoiding any disruptions in sales during the high-demand period of Diwali.
Also read: Woman caught smuggling 26 iPhone 16 Pro Max at Delhi Airport: How she tried to sneak them
Stockpile expected to meet festive season demand
A similar sentiment was shared by Faisal Kawoosa, Founder and Chief Analyst at Techarc. He believes that Apple has enough inventory to fulfill its festive season sales in India.
“Fortunately for iPhone, the shipments till Diwali time would be taken care of,” he said in a statement. “They should have the stocks available, which could fulfill sales till Diwali. And that also gives them time to bring this facility live in action,” Kawoosa added.
He also expressed some concerns about potential delays in exports, particularly for regions like the Middle East, where the holiday season coincides with the New Year and Christmas. “In terms of exports, this could be an issue because, you know, Christmas time and New Year is the time when other markets get active about sales,” he noted.
Potential impact on older iPhone models and exports
Tarun Pathak, Research Director at Counterpoint Research, added further insights. “There could be a 10-15% impact on production of older iPhone models from India. The necessary components for shipments during October will have gone two weeks before to the assembly partner, meaning there will not be any impact for the next month, at least till October end,” he said.
Pathak mentioned that there could be a shipment delay towards early November, depending on Apple’s strategy, whether the impact is directed more towards domestic sales or exports. “Apple can also depend on imports for a certain time frame as it is already importing iPhone 14 and iPhone 15 (though small quantities, currently around 5% of the total iPhone 15 domestic demand),” Pathak added.
So, while the fire incident at Tata’s iPhone plant has caused some concern, experts believe that the short-term impact on iPhone 15 and iPhone 16 shipments in India will be minimal. With Apple’s stockpile and the option to rely on imports, Indian buyers can breathe a sigh of relief as Diwali sales are expected to proceed without major disruptions.
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Ayushi Jain
Tech news writer by day, BGMI player by night. Combining my passion for tech and gaming to bring you the latest in both worlds. View Full Profile
