Following an explosion at the Foxconn Technology Group?s plant (in Chengdu, China), Apple Inc may face a production loss of 500,000 iPad 2 tablets. The explosion had killed three and injured at least 15 people.
Depending on how long the plant closure is planned, the drop in manufacturing cannot be determined. The total could be even greater if the suspension of operations at the facility lasts longer than a month. It is stated that the Shenzhen based Foxconn factory that also produces iPads, may not be able to make up for the lost output.
As speculated by Mike Abramsky, a technology analyst, the impact could be even bigger. If Chengdu is where Apple manufactures most of its iPads, instead of the Shenzhen factory, the blast could lead to lost production of 1.8 million to 2.8 million iPads.
Apple, based in Cupertino, California, fell 82 cents to $334.40 today in NASDAQ Stock Market trading.