iPad Production may be Hit by Explosion at Pegatron Factory

There is concern that iPad stocks might fall short due to disruption in the supply chain caused by a recent accident at a Pegatron plant in China, Forbes reports.

The explosion at the Pegatron factory in Shanghai injured 60 people, with almost half of them being committed to hospital, though none had life-threatening injuries. Investigations about the incident are still ongoing, but preliminary reports suggest that a high concentration of aluminum dust might have been the cause.

This is the third time this year that Apple's supply chain has been affected by a disaster. In May, another major Apple supplier, Foxconn, had to partially suspend operations after an explosion in similar circumstances, which seriously disrupted iPad 2 production.

At that time, 15 workers were injured and the investigation raised questions about the working conditions in the Chinese plant based in Chengdu. Then, the devastating earthquake in Japan also caused problems with the supply of iPad components.

Partially due to the problems its partners in Asia were facing, and in order to broaden its supply chain, Apple initiated substantial plans to expand iPad production to Brazil, earlier this year.