The explosion at the Foxconn factory in Chengdu is expected to disrupt production of 350,000~400,000 units of Apple's iPad, according to analysis by Displaybank.
Shenzhen and Chengdu are mainly producing iPad2 and Chengdu plant is producing about 32%. Due to this explosion, about 3~5% of total production disruption is expected.
Chengdu plant, in charge of parts and assembling of iPad2, is in operation for total of 24 production lines. A05 plant, where explosion occurred, produces iPad2 back cover, and there are 4 back cover production plant located in Chengdu, including A05, and daily production is approximately 50,000~60,000 units.
Due to the explosion, A05 stopped the production, and other 3 back cover-producing plants also stopped the production for safety check. A05 plant is expected to be reactivated in the mid-June, and inspection period of other 3 plants will be 4~7days, so they will be reactivated within this week.
Ricky Park, senior analyst at Displaybank noted "Given existing back cover production capacity, the total production disruption will be approximately 550,000~700,000 units, but since current inventory is about 200,000~300,000 units, actual production disruption will be about 350,000~400,000 units. However, through procurement from Shenzhen plant, damage will be minimized."
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