Apple supplier Foxlink halts production at Andhra facility after massive fire

U.S.-based smartphone maker Apple Inc’s supplier in India, Foxlink decided to halt production at its facility in Andhra Pradesh after a massive fire at its premises collapsed a part of the building on the premises. Foxlink, a subsidiary of Taiwan-based Cheng Uei Precision Industry Co Ltd, makes iPhone charger cables for the U.S.-based smartphone giant in India.

The prime cause of the fire, which broke out on Monday afternoon and damaged more than 50% of the equipment at the facility, is yet to be ascertained, a global news agency report said. Though the fire has been contained now, and no casualties have been reported so far, officials are pegging the monetary loss at the facility at about $10-12 million. Both Apple and Foxlink, however, have not issued any statements on the matter so far.

Foxlink is one of many of Apple's supplier partners in India. The Cupertino, California-based tech behemoth started assembling iPhones in India in 2017, initially with two Taiwanese companies Wistron and Foxconn.

Apple is betting big on India when it comes to ramping up manufacturing facilities due to various regulatory and supply chain issues in neighbouring China.

After launching the newest offerings globally, tech giant Apple Inc announced it’ll assemble its flagship iPhone 14 in India, making it the first time when the company started assembling its latest offering in India. The move, many say, was aimed at boosting sales in the thriving global smartphone market. The latest iPhone 14 made in India is not only sold in India but other global markets as well.

Apple chief executive Tim Cook earlier this month said the iPhone maker's India business "set a quarterly revenue record and grew very strong double digits year-over-year". "India is a hugely exciting market for us and is a major focus. We brought the online store there in 2020. We will soon bring Apple retail there," Cook said in the December quarter earnings call on February 2.

The tech giant is putting a lot of emphasis on the Indian market. "There's been a lot done from financing options and trade-ins to make products more affordable and give people more options to buy. And so there's a lot going on there," the Apple CEO said.

Cook said he is very bullish on the India market. "We actually did fairly well through COVID in India. And I'm even more bullish now on the other side of it, or hopefully, on the other side of it. And that's the reason why we're investing there. We're bringing retail there and bringing the online store there and putting a significant amount of energy there," he added.

Apple's revenue fell 5% year-on-year to $117.2 billion in the quarter that ended December 31, 2022. The company, however, posted all-time iPhone revenue records for India and Vietnam.