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San Francisco : may face a production loss of 5, 00,000 iPad 2 tablets after the explosion at Foxconn Technology Group's plant in Chengdu, China, according to research firm IHS ISuppli.
The drop in manufacturing will depend on how long the plant is closed following a May 20 explosion that killed three people and injured at least 15. The total could be even greater if the suspension of operations at the facility lasts longer than a month, the firm said.
Another Foxconn factory in Shenzhen that produces iPads may not be able to make up for the lost output, ISuppli said. The manufacturing breakdown may lead Apple to miss ISuppli's forecast of 7.4 million iPad 2 shipments in the quarter ending in June, the El Segundo, California-based research firm said. Mike Abramsky, an analyst with RBC Capital Markets, speculated that the impact may be larger. If Chengdu is where Apple manufactures most of its iPads, instead of the Shenzhen factory, the blast could lead to lost production of 1.8 million to 2.8 million iPads, he said. Abramsky had predicted 8 million iPad shipments during the period. By contrast, Shaw Wu, an analyst with Sterne Agee in San Francisco, expects Apple to sell 6.8 million iPads in the June quarter.
Courtesy: DNA India
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