Smart phone industry executives said that the outbreak of Corona virus in China could start disrupting India's production in this area if it continues to spread in February, as it may delay component shipments.
India is the world's largest smartphone maker after China, but it still relies to a large extent on it to supply parts such as cells, display boards, camera units and printed circuit boards.
Foxconn and Wistron of Taiwan are making an iPhone in India for Apple, and Foxconn is producing phones there for the Chinese company, Xiaomi. Other smart phone makers in India include South Korea's Samsung OnePlus.
India's smartphone makers have so far managed to cope with the effects of the virus, partly because they boosted the inventory of Chinese-made parts anyway to cover the Lunar New Year holiday period when Chinese factories shut down.
"These disturbances have already been planned, but if (the spread of the virus) spreads, then for the production of March and April we will face a serious problem ... We are definitely worried," says Ray, co-founder of smart phone maker Lava.
Ray said some components could be shipped from markets such as South Korea, Vietnam and Taiwan, but smartphone makers would only purchase such a "last resort" because it would force companies to make changes, including design and software.
The Chinese company OnePlus said its Indian operations could be managed at least in the short term.
"We have been well covered because we have all the production in India, we already have enough inventory, and until we move forward many components will come directly from other markets," said Vikas Agarwal, Head of India Branch at One Plus.
While Beijing has expressed confidence in overcoming the "devil" virus, major companies - such as Google and Swedish Ikea - have closed their operations in China.
With many airlines suspended flights to China, the movement of technical personnel from the country - such as on-site executives, and specialists in machinery and automation - will also be curtailed, hitting the smart phone sector in India.
"If the problem persists beyond February 10, we have a real problem," said Pankaj Mohandro, president of the Association of India's Cell Phones and Electronics, a pressure group for the Indian mobile industry.