An explosion at one of two factories that make Apple's new iPad 2 highlights the risks of a global manufacturing strategy that has cut costs but concentrates production in a few locations.It would be a shame if Apple couldn't keep up with the demand. At least those three won't need to buy them.
Foxconn Technology Group, the contractor that manufactures Apple's iPhones and iPads, said Friday's blast in the western city of Chengdu killed three employees and injured 15. The Taiwanese company said production was suspended but did not respond to questions. Monday about how supplies of iPads might be affected.
Foxconn said the blast was caused by combustible dust in a workshop that polished products. It said operations in workshops that do similar work at its other factories in China would be suspended pending an investigation.
Estimates by industry analysts of the impact on iPad production ranged from minimal to up to 2.8 million units in lost output. That is equal to just over half the number sold in the first three months of this year but Apple says sales are so strong it already is struggling to keep up with demand.
Monday, May 23, 2011
Dying For an iPad 2?
Explosion at China iPad Factory Shows Supply Risks