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iPad 2 Plant Explosion May Mean Major Losses For Apple

Analysts project losses up to 2.8 million, or none at all
By: TweakTown Staff | Mobile Devices News | Posted: May 24, 2011 3:23 am

Explosions rocked Foxconn Chengdu iPad 2 production plant last week, resulting in the death of three employees and injuring at least 15 others according to early reports on Friday. Despite the tragic consequences of the event, many seemed focus on speculating on how the disaster would affect the iPad 2 production line, which manufactures the A5 chip for the popular tablet.

 

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Though the cause is still unknown, suspension in production at the plant enduring more than a month may cause Apple to fall short of the projected 7.4 million iPad 2 shipments intended to close out this quarter, even if a neighboring Shenzhen Foxconn plant were to try to pick up the slack. Analysts from research firms like ISuppli and RBC Capital Markets have predicted a loss of up to 2.8 million iPads.

 

According to Bloomberg, the speculations may be just that- in a report today, an analyst from San Francisco-based Sterne Agee wrote in a report that concerns are evidently "overdone".

 

I'm still curious about what was the original cause of the explosion- but Steve Dowling, Apple Spokesperson, already stated that they were working with their partners in Shenzhen to figure out that very issue.

 

NEWS SOURCES:Bloomberg.com

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