Asian tech industry blog Digitimes has reported on two seemingly contradictory stories regarding how Friday’s tragic explosion at the Foxconn plant in Chengdu China will affect iPad 2 production. In one post, Digitimes states that production has been suspended at the Chengdu plant. Although the Chengdu plant produces less than 30 percent of iPad 2s, the production suspension report has caused concerns over availability constraints in the near future. The majority of the devices are manufactured at a plant in Shenzhen.
However, Digitimes has also posted that, according to Commercial Times (a Chinese-language financial newspaper), the disaster will not affect iPad 2 assembly lines since the explosion and subsequent fire occurred at a location used to store chemicals and coatings, leaving the assembly lines unscathed. Foxconn has stated that iPad 2 production will continue as previously planned.
This may be Foxconn PR spin to try to put the brakes on the 5 percent drop in its stock last night during Asian trading. It may also be due to Foxconn’s intention to ramp up assembly at its Shenzhen facility, which is expected to increase production from 2 million units per month to 4-5 million units per month in the second quarter. The manufacturer hopes to raise output to 9-10 million units per month in the second half of the year.
It’s too early to tell how this will play out, but our collective hearts and prayers go out to the victims of this horrible tragedy.
[via 9to5 Mac]
iPad 2 production may not be affected by explosion at Foxconn plant originally appeared on TUAW on Mon, 23 May 2011 12:30:00 EST. Please see our terms for use of feeds.
Source | Permalink | Email this | Comments