Apple iPad 2 Supplies Could Be Affected After Chinese Factory Explosion

An explosion that hit a Foxconn International Holdings plant in an industrial area west of Chengdu in Sichuan Province, could have some knock on effects for the supply of Apple products including the iPad 2 and the iPhone 4.

The incident happened on May 20th at 7 p.m. and resulted in two fatalities and injuries to 16 other Foxconn employees. At this stage, the police have apparently ruled out the possibility of a criminal act.

Foxconn declared that production has been stopped at the site of the explosion until the investigation is completed which may have a negative effect on supply as Apple is scrambling to produce enough iPad 2 as it is.

The ODM giant added that the safety of its employees remains its highest priority and that it would "do whatever is required to determine and address the cause of this tragic accident."

A spokesperson for Apple confirmed that the company will be working closely with Foxconn to evaluate what caused the blast and said that the company was saddened by the tragedy.

Apple shares lost 1.56 per cent in a moribund Nasdaq market on Friday although it is unlikely that it was caused by the Chinese blast.

There is still a delay of up to two weeks for delivery on all the twelve iPad 2 stock keeping units online, which highlights how demand for the tablet is still far outstripping supply.