Foxconn Factory Fire Puts iPad Supply in Jeopardy

May 23, 2011 -

A recent fire at a Foxconn factory in Chengdu City, China has slowed down production of the iPad, which may lead to shortages of the device in the not- too-distant future. You may recall that Foxconn is the same global manufacturing company that saw a raft of suicides last year because of poor working and living conditions and complaints that the company was paying its workers what equated to slave wages.

The latest tragedy to hit the company is a fire at its Chengdu City plant where 15 were injured and three employees died. Foxconn's Chengdu site shipped around 25 - 30 percent of the total iPad 2 devices shipped in April, while its Shenzhen site made up the rest, according to unnamed sources speaking to Digitimes.

Production has been suspended at a Foxconn factory in Chengdu City, western China, following an explosion that left three dead and 15 injured on May 20. The plant recently started production of Apple's iPad 2 raising concerns about a possible impact on the device's output schedule.

Foxconn only recently opened up iPad 2 production lines at the new plant in Chengdu, while the company's facilities in Shenzhen, southern China, remain the main manufacturing site for the tablet PC, sources at upstream component suppliers have commented. Foxconn's Chengdu site shipped 25-30% of the total iPad 2 devices shipped in April, while its Shenzhen site made up the remainder, the sources estimated.

Prior to the fire, Foxconn had planned was to ramp up iPad 2 production at the Chengdu factory site to 3-4 million units in the second quarter from about 600,000 in Q1. The company had hoped to produce a monthly figure of 13-14 million in the second half of 2011.

At its Shenzhen production base production of iPad 2 will be much lower; the company expects monthly output to increase to 4-5 million units a month in the second quarter from 1.8 - 2 million in the first. The end goal there is 9 - 10 million units in the second half.

Foxconn said in an official statement about the explosion and subsequent fire at the facility is being investigated by local police officials. Production has been suspended at the site of the explosion until the investigation is completed.

Source: Digitmes

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Matthew Wilsonit is a game worth playing if you have a pc/360/ps304/20/2014 - 9:34pm
MaskedPixelantehttps://twitter.com/IGLevine/status/457552538343325696 The Lutece Twins show up in some of the most unlikely of places.04/20/2014 - 2:44pm
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MaskedPixelantehttp://www.joystiq.com/2014/04/18/playstation-99-cent-sale-discounts-tokyo-jungle-super-stardust/ Weekend long PSN flash sale. So much stuff is 99 cents for the rest of the weekend.04/18/2014 - 5:59pm
Adam802http://www.polygon.com/2014/4/18/5627928/newtown-video-game-addiction-forum04/18/2014 - 4:14pm
Matthew Wilsonit is a video talking about why certain games/products/consoles do well, and others do not. he back it up with solid research.04/18/2014 - 3:56pm
Andrew EisenI'm not keen on blind links. What is it?04/18/2014 - 3:45pm
Matthew Wilsonthis is worth a whatch https://www.youtube.com/watch?v=MyXcr6sDRtw&list=PL35FE5C4B157509C904/18/2014 - 3:43pm
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MaskedPixelanteNumber 2: If Humongous Entertainment wanted their stuff on Steam, why didn't they talk to their parent company, which does have a number of games published on Steam?04/17/2014 - 8:45pm
MaskedPixelanteNumber 1: When Night Dive spent the better part of a year teasing the return of true classics, having their big content dump be edutainment is kind of a kick in the stomach.04/17/2014 - 8:44pm
Matthew Wilsonhttp://www.giantbomb.com/articles/jeff-gerstmann-heads-to-new-york-takes-questions/1100-4900/ He talks about the future games press and the games industry. It is worth your time even though it is a bit long, and stay for the QA. There are some good QA04/17/2014 - 5:28pm
IanCErm so they shouldn't sell edutainment at all? Why?04/17/2014 - 4:42pm
MaskedPixelanteNot that linkable, go onto Steam and there's stuff like Pajama Sam on the front-page, courtesy of Night Dive.04/17/2014 - 4:13pm
Andrew EisenOkay, again, please, please, PLEASE get in a habit of linking to whatever you're talking about.04/17/2014 - 4:05pm
MaskedPixelanteAnother round of Night Dive teasing and promising turns out to be stupid edutainment games. Thanks for wasting all our time, guys. See you never.04/17/2014 - 3:44pm
Matthew WilsonAgain the consequences were not only foreseeable, but very likely. anyone who understood supply demand curvs knew that was going to happen. SF has been a econ/trade hub for the last hundred years.04/17/2014 - 2:45pm
Andrew EisenMixedPixelante - Would you like to expand on that?04/17/2014 - 2:43pm
 

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