The unfortunate incident happened at Foxconn’s plant in Chengdu, China is likely to affect the manufacturing process of Apple’s iPad 2 tablets. According to research firm IHS iSuppli, Apple will have to face a huge production loss of 500,000 iPad 2 devices due to the explosion occurred at manufacturing plant.
If Chengdu plant remains closed for long period, it will definitely decrease the production rate. Foxconn does have another plant in Shenzhen, but it is being said that it won’t be possible for them to recover from the loss.
This explosion has already taken 3 lives and injured 15 people, and it looks like it’s going to affect more people after the Q2 results. IHS iSuppli believes that Apple could also miss the 7.4 million iPad 2 shipments.
Mike Abramsky, a technology analyst with RBC Capital Markets, has also said that the manufacturing breakdown may be larger than expected. Foxconn’s Chengdu plant has been producing around 30% iPad tablets, and now this blast could actually stop the production of 1.8 million to 2.8 million iPads.
However, there is no firm belief over the production loss. Shaw Wu, an analyst with Sterne Agee in San Francisco, said that Apple will make up for the shortfalls with the help of other factories, and it will sell 6.8 million iPads in the June quarter. Apple team is now finding the cause of this explosion, but early reports suggest that combustion of highly explosive aluminum dust has lead to the blast at factory.
[via – BusinessWeek]