Chennai Cyclone Halts iPhone Production, Apple Ready with Adequate Stock

Cyclone Michaung hits iPhone roduction in Chennai.

Highlights
  • iPhone manufacturers Foxconn and Pegatron stopped their production due to Cyclone Michaung.
  • With about 35,000 workers at its Tamil Nadu plant, Foxconn is reviewing the situation and has yet to decide if production will restart on Tuesday.
  • The intense rainfall has not only led to the flooding but also forced the closure of the city’s airport, causing significant regional disruptions.
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Amidst Cyclone Michaung‘s heavy rains, iPhone manufacturers, including Foxconn and Pegatron, have temporarily halted manufacturing at sites near Chennai in southern India. The persistent rainfall has caused flooding and led to the closure of the city’s airport, resulting in significant disruptions in the region. However, industry insiders ensure this disruption would not affect iPhone supplies, as manufacturers keep adequate stock on hand to deal with such scenarios. Here’s all you need to know about:

Cyclone Michaung Disrupts iPhone Production in Chennai

Sources close to the situation revealed on Monday that Foxconn, which employs around 35,000 individuals at its Tamil Nadu iPhone plant, is evaluating the circumstances and has yet to decide whether production will resume on Tuesday or not.

Moreover, this incident marks the second time in recent months that Pegatron has had to halt its factory operations, following a temporary suspension of iPhone assembly in September due to a fire incident.

Evaluating the Impact on iPhone Production

Industry insiders close to Apple have stated to ET Telecom that the closure of the Chennai factory due to extreme weather from Cyclone Michaung will not impact Apple’s iPhone production in India. Apple reportedly maintains sufficient buffer stocks of iPhones in distribution to handle disruptions, ensuring a week-long disruption can be managed without affecting supplies.

Production at Foxconn and Pegatron facilities near Chennai, vital to Apple’s local assembly and part of the government’s production-linked incentive scheme, remains halted despite improved weather conditions.

Apple emphasizes worker safety in such situations, with plans to produce nearly Rs 1 lakh crore worth of iPhones in India this financial year. The disruption coincides with the holiday season in Western countries, traditionally a peak period for iPhone sales.