There’s no official word from Apple (AAPL) regarding the reported explosion Friday at one of the facilities of its main manufacturing partner, Foxconn Technology Group, where some iPad production reportedly takes place.
An article late yesterday in the Chinese language China Times paper cites the company saying that there will be no delay in its iPad 2 production from the incident, apparently saying that the assembly line itself was not affected, just the “warehouse” and “painting production line.” (Google translation here.)
An article in DigiTimes this morning by Yenting Chen and Jessie Shen notes that Foxconn had only just begun production of the iPad 2 at the Chengdu facility. The Chengdu produced 25% to 30% of all iPads in April, the authors write, citing “sources at upstream component suppliers.”
This morning, Brian White with Ticonderoga Securities writes that because Foxconn’s parent, Hon Hai, can shift production to its Shenzen facility, where the bulk of iPad 2 production happens, there is unlikely to be any material impact to iPad 2 production.
“Keep in mind, Hon Hai has been expanding its manufacturing presence in Western China to cities such as Chengdu,” writes White. “However, Hon Hai’s main production location remains in Shenzhen, where we believe the company produced the iPad 1 and iPad 2 before shifting some iPad 2 production to Chengdu.”
Apple shares today are actually faring a bit better than the market, down $3.84, or 1%, at $331.38.
Article courtesy of Tech Trader Daily