Deadly Foxconn Explosion "Could Cost Apple 500,000 iPads A Month"




The explosion and fire at the Foxconn plant at Chengdu in China could cut iPad 2 production by 500,000 a month, says market analyst firm IHS iSuppli.

The blast killed three workers and injured 15 others and a section of the plant has been closed while the authorities investigate the cause.

IHS iSuppli says:
Total iPad 2 production capacity at the Chengdu site amounts to about 500,000 units per month. If the explosion results in a production shutdown until the end of June—which may or may not happen, depending on the outcome of the still-pending investigation—a production stoppage of half a million units could result. Should the production suspension last longer, the impact on production could be even greater.
Foxconn chairman Terry Gou reportedly said that the explosion will not delay the production of the iPad in the third quarter. However, IHS iSuppli believes this view is dependent on a return to full production pending the results of an investigation. IHS iSuppli research indicates there likely will be some impact on production in the second quarter.
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