Title: Fire Halts iPhone Assembly at Pegatron Factory in South India
Subtitle: Minor Fire Incident Temporarily Suspends Production of iPhones at Apple Supplier, Pegatron
Date: [Current Date]
In a setback for Apple’s production operations in India, a fire broke out on Sunday at the Pegatron factory located in southern India, causing a two-day halt in the assembly of iPhones. This incident marks the second consecutive day of disruption for the factory, following the cancellation of all shifts on Monday.
Fortunately, the fire was classified as a minor incident with no injuries, casualties, or significant damage to assets reported. Despite this, multiple fire engines and nearly five hours were required to extinguish the blaze. Currently, the cause of the fire remains under investigation.
Workers at the Pegatron facility were instructed not to report for work on Tuesday, although no specific reasons were provided for this directive. The company, however, assured its stakeholders that the incident would not have a significant financial or operational impact.
Prior to the incident, the factory had been producing iPhones at a daily capacity of approximately 26,000 units. However, recent reports indicate that the output had been reduced to 8,000-12,000 units per day.
Pegatron, accounting for 10% of iPhone production in India according to research firm Counterpoint, began iPhone assembly operations in the country in September 2020. The company is currently in talks to establish a second contract facility for Apple in Tamil Nadu.
This fire incident adds to a series of challenges faced by Apple’s suppliers in India. Just this year, a Foxconn facility encountered food poisoning issues, while a Wistron plant experienced worker unrest in 2020. Additionally, the production of iPhone charging cables was temporarily halted due to a fire at a Foxlink facility in February.
Despite these setbacks, research firm Counterpoint estimates that over nine million iPhones will be sold in India this year, indicating a resilient demand for Apple products in the country.
As investigations continue into the cause of the fire at the Pegatron factory, both Apple and Pegatron will be closely monitoring the situation to ensure smooth operations and delivery of iPhones to the Indian market.
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