Foxconn explosion might impact IPad availability

The recent explosion at Foxconn plant in China which claimed lives of 2 people might impact the availability of IPad 2. Even though company officials informed that the fire was quickly put out and the factory operations will not be effected, industry analysts believes that there could be an impact on the factory production. Foxconn plant have been the major manufactures for Apple Products like IPad and IPhone, and also other consumer goods for Sony and HP.

Analyst Mike Abramsky of RBC Capital, said in his research note that by worst case scenario  production of the factory will be reduced by 1.8-2.8 million units. This is nearly 22-36% of the estimated 8 million IPad shipment for the third quarter. If the figures turns true then this could also effect the production for fourth quarter. Based on Abramsky’s best case scenario, the production might be hit by less than 1.3 units and will have least impact on fourth quarter.

The recent drop in Apples share of 1.5 %, according to Abramsky, could be because the investors have taken the worst case scenario into account. The news of explosion came out when Apple had recently had made their international launch of IPad 2 devices, which have raised the demand for the latest and popular tablet device.

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