Foxconn Plant Accident To Cause iPad 2 Shortfall

The explosion at the Foxconn facility in China could lead to a deficit of 500,000 iPad 2 units in Q2, the research company IHS iSupply has suggested.

Foxconn’s manufacturing facility in Chengdu exploded last Friday killing three workers and injuring another fifteen. The company uses the factory to manufacture the iPad 2.

The Chengdu facility is responsible for the manufacturing of around 500,000 iPad 2 devices every month. The research company suggested that should the production be halted until the end of June, Apple could face a half a million unit shortfall, and added that production could be affected to an even greater extent should the stoppage last longer.

Most iPad 2 devices are manufactured at another Foxconn facility, namely the one from Shenzhen, but iSupply believes this factory would not be able to produce an extra volume of 500,000 units in order to compensate for the production shortfall from Chengdu during Q2.

The Chinese-based Foxconn should manufacture between 7.8 and 8.1 million iPad 2 devices in the second quarter, but as a result of the Chengdu explosion, the total production could be between 300,000 and 600,000 units lower than expected.

The explosion’s effect on production "will only last for the short term", iSupply reassured in its report.