Hon Hai Explosion May Set Back iPad 2 Production

The recent explosion at Hon Hai Precision Industry's Chengdu factory may end up affecting iPad 2 production, a Wall Street analyst revealed.

However, he ruled out any possibilities of Apple’s overall performance being hit by the unfortunate incident that took 3 lives, and left dozens injured.

The man behind the revelation, Ticonderoga Securities analyst Brian White said, “It will definitely impact production, but this isn't something that will be material to Apple's earnings," Computer World reports.

According to White’s research note on last week’s explosion and fire at Hon Hai’s Chengdu, China facility, there is a high probability that production of the iPad 2 will be shifted to somewhere else.

Apparently, White is not the only analyst who thinks this. Many other analysts echoed his claims by saying that any disruption in the production of iPad 2 will be temporary, and that the company will recover quickly.

"If this was the only plant where Hon Hai assembles iPads, it would be different," said White.

"But they have still more production at Chengdu, as well as the Shenzhen facility. If all they need is an incremental capacity, this will not be something that materially affects Apple."

Hon Hai is also widely known by its tradename Foxconn.