Apple Factory Exploded Declining Production

Apple Inc. may have to face losses due to the explosion that occurred at the factory Foxconn Technology Group in Chengdu, China. Research firm estimates that tablet computer manufacturers would lose production of 500,000 units iPad 2.  IPad 2 production decline will depend on how long the lockout lasts. As is known, the explosion which occurred at the factory IPAD, 20 May, also killing three workers and injuring 15 others.

Total losses could be greater if the plant operation was delayed more than a month. Meanwhile, another Foxconn factory in Shenzhen, which also produces iPad 2, can not seem to fill the vacancy production from its plant in Chengdu. In fact, Apple probably could not meet delivery iPad 2 of 7.4 million at the end of June quarter, as expected.

Last week, Mike Abramsky, an analyst at RBC Capital Markets Technology, speculate, the blast may be greater. "If Chengdu is the largest factory producing Apple iPad, not a factory in Shenzhen, the blast may cause Apple to lose production of 1.8 million to 2.8 million units of the iPad," he said. Abramsky had predicted, transmission iPad during this period has reached 8 million units.

In contrast, Shaw Wu, analyst at Sterne Agee in San Francisco, said in a report today that concerns the production decline is too excessive. "The plant other Apple will soon boost production to cover shortages," he said. He predicted that Apple could sell 6.8 million iPad until June. Meanwhile, Steve Dowling, a spokesman for Apple, said, together with partners in Taiwan, the company is investigating the cause of the explosion.