Explosion to Result in Lost Month of iPad 2 Production (AAPL) - IHS
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Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.5%
Revenue Growth %: -4.1%
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Production of Apple's (Nasdaq: AAPL) much-coveted iPad 2 is expected to see a bump in the road as a recent explosion at Foxconn's plant in Chengdu, China will result in a production loss of about 500,000 units.
IHS (NYSE: IHS) iSuppli reports the Chengdu site has production capacity of 500,000 units per month. IHS sees the shutdown lasting through June.
Though Foxconn CEO Terry Gou says the explosion will not delay production in the third quarter, a pending investigation into the cause of the explosion could delay the exec's time line.
Foxconn has a factory in Shenzen which is expected to produce about 7.5 million iPad 2s in the second quarter, or about 2.5 million per month. It's not clear to what extent Shenzen will be able to increase capacity in order to compensate for lost production at Chengdu.
Additionally, the explosion left three employees dead, opening potential scrutiny for Apple's corporate responsibility. Foxconn reported a number of employees committed suicide recently, with blame placed on working conditions.
IHS (NYSE: IHS) iSuppli reports the Chengdu site has production capacity of 500,000 units per month. IHS sees the shutdown lasting through June.
Though Foxconn CEO Terry Gou says the explosion will not delay production in the third quarter, a pending investigation into the cause of the explosion could delay the exec's time line.
Foxconn has a factory in Shenzen which is expected to produce about 7.5 million iPad 2s in the second quarter, or about 2.5 million per month. It's not clear to what extent Shenzen will be able to increase capacity in order to compensate for lost production at Chengdu.
Additionally, the explosion left three employees dead, opening potential scrutiny for Apple's corporate responsibility. Foxconn reported a number of employees committed suicide recently, with blame placed on working conditions.
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