Foxconn factory explosion prompts iPad 2 supply concerns

Darren Allan

May 23, 2011

Apple’s iPad sequel has been dogged by supply and demand woes since its highly successful launch, followed by the Japanese earthquake disaster which raised questions over weakened supply lines.

And supply issues could potentially be further compounded by an explosion at the Foxconn manufacturing plant in Chengdu last Friday, which killed three and injured fifteen staff, DigiTimes reports.

Apparently this factory has just been drafted over to iPad 2 production, and sources reckon that it was responsible for the production of something like 25% to 30% of the Apple tablets shipped last month.

That being the case, the accident could conceivably constrict supply. Other sources, however, have cited analysts who claim the percentage of iPad 2s manufactured at Chengdu isn’t as high as DigiTimes’ sources have stated, and the correct figure is perhaps less than 20%.

That still might have an impact, of course, but perhaps more of a temporary blip than anything to get overly concerned with.

The police are currently investigating the explosion at the Chengdu plant.






 

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