Monday, May 23, 2011

Apple´s iPad2 slowed down output production after Foxconn factory explosion

WorldWide Tech & Science. Francisco De Jesús.


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. 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. 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.

Foxconn's goal was to ramp up iPad 2 production at the Chengdu factory site to 3-4 million units in the second quarter from about 600,000 in the first, with an aim to grow the monthly figure to 13-14 million in the second half of 2011.

Meanwhile, Foxconn's Shenzhen production base will increase production of iPad 2 at a slower pace. Monthly output from the site is expected to increase to 4-5 million units a month in the second quarter from 1.8-2 million in the first, and ultimately reach 9-10 million units in the second half.

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.

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