Apple to maintain iPad 2 supply despite production-crippling explosion

“Production of the iPad 2 from Apple Inc. should continue unabated, analysts said Tuesday following a deadly explosion that disabled a Chinese electronics factory contracted to build the market-leading tablet,” Jameson Berkow reports for The National Post.

“Shares of Cupertino, Calif.-based Apple fell as much as 1.5% before markets closed in North America last week, as the potential impact on Apple’s supply chain remained unknown leading into the start of this week,” Berkow reports. “But the veil was lifted and the all-clear given on Tuesday, when Barclays Capital and Brigantine Advisors both released reports expressing confidence in the world’s largest technology company’s ability to make up any potential shortfall with relative ease.”

Berkow reports, “Kirk Yang, I.T. hardware analyst with Barclays, in a note to clients on Tuesday said, ‘While short-term disruptions are possible, the impact should be limited.'”

Read much more in the full article – excellent anecdotes about the early days of Apple, recommended – here.

[Thanks to MacDailyNews Readers “Brawndo Drinker” and Lynn W.” for the heads up.]

7 Comments

    1. I can’t see how a polishing operation could set anyone back. It’s not a bottleneck area. If Foxconn was desperate, they could get any other mfring company to do the polish operation.

  1. It also depends on the basis, because 500.000 off the estimated 7 Mio for the Q2/11 would be disapointing, but 500.000 off 12 Mio should be no problem at all.

  2. If the first part of the item headline is true, then how about the last part of the headline ? either or….. who thought up this one ? how is it possible to maintain production if there is a production crippling explosion

    1. @buddabob — Easy! Foxconn is NOT the sole supplier! Ramp up production at the other suppliers — some of whom already have reserve production capability.

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