RUMOR: Foxconn’s damaged factory produces 25-30% of Apple’s total iPad 2 units

“Production has been suspended at a Foxconn factory in Chengdu City, western China, following an explosion that left three dead and 15 injured on May 20,” Yenting Chen and Jessie Shen report for DigiTimes. “The plant recently started production of Apple’s iPad 2 raising concerns about a possible impact on the device’s output schedule.”

“Foxconn only recently opened up iPad 2 production lines at the new plant in Chengdu, while the company’s facilities in Shenzhen, southern China, remain the main manufacturing site for the tablet PC, sources at upstream component suppliers have commented,” Chen and Shen report. “Foxconn’s Chengdu site shipped 25-30% of the total iPad 2 devices shipped in April, while its Shenzhen site made up the remainder, the sources estimated.”

Chen and Shen report, “Foxconn has issued a statement regarding the explosion and subsequent fire at the facility saying it is cooperating fully with an ongoing investigation by local police officials. Production has been suspended at the site of the explosion until the investigation is completed, it added.”

Read more in the full article here.


    1. Maybe. However, it appears to me, the already undervalued price of the stock is padded with extra cushioning at this point.

      A growing number of Apple watchers seem to consider/evaluate this wonderfully innovative company, mostly for its remarkable run at the stock market; and are often disappointed by its performance. I’m not at all suggesting that you are one of them. But there are plenty of folks, tend to paint/equate the company’s other innovations (technical, aesthetic, leadership, morality compass etc.) with stock performance, and are accordingly thrilled disappointed by the roller coaster slopes.

      Few of us long time Apple users (I’m also a long time AAPL owner), find this way of looking at their favourite company, a bit odd, if not exasperating at times (PED, Andy Zacky et al). Does that make sense?

      1. *Zaky, sorry. I don’t have anything against them, matter of fact they provide great service to the Mac fans and the Apple shareholders. So, please, disregard my previous comment, if you can.

      2. Like you, a long-time Apple and AAPL owner. Both ownerships have had a transcendent effect on my life. My investing history covers quite a few decades, and I have never seen a time, or a particular stock, with as much manipulation as we have now with AAPL. All one can do is wait until they’ve driven it below all logic to buy, and then, if you need to sell, wait for the inevitable giddy high.

  1. Not to deprecate the loss of life and injuries caused by the explosion (hope they get well soon), if they were able to put the entire facility up in 70 days including fit out, then I think resuming full flow production again will be a matter of days. Perhaps against this they can investigate the cause of the explosion and ground the air ducts to prevent sparking but I feel the interruption will be minimal.

      1. I don’t know why you’re nattering on like a crazed nutjob. 

        In the first place the explosion took place in the polishing area, not machining area. In the second place the plant is an assembly plant not a manufacturing facility. In the third place it’s still in pilot phase for iPad assembly having only opened in October last year.

        Get off my case you stupid dick.

          1. Only nutcases like you construct reality in their own heads thus making a mountain out of a molehill.

            Take your meds or jump off a bridge if you’re that offended by my comments.

      2. Thanks for the support- wasn’t aware of those replies, although in my decades online, I hardly judged them offensive compared to the usual adhominem. However, dust fires in manufacturing do usually have improper or inadequate ventilation as a cause, and, yes, a dust fire in a ‘clean-room’ assembly area is, well, simply unheard of. FWIW, in all my years of receiving new product, Apple gear does tend to be the cleanest, most polished, well-presented, and well-constructed, certainly among computer brands.

  2. I call conspiracy! Close forensic inspection will prove beyond a shadow of a doubt that the two half-CEOs of RIM planted a bomb at Foxconn in a vain attempt to sabotage sales of iPads.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.