Apple has have enough iPad 2 components to maintain production for 2-3 weeks
Apple, along with its Taiwanese manufacturing partner Foxconn, has stockpiled enough components to continue to assemble new iPad 2s for at least another 2 to 3 weeks before they'd face a stockout that would halt production should the situation in Japan not improve, according to a published report.
Although it declined to comment on specific clients, Foxconn Electronics has reportedly emphasized that it will not see any component shortages in the short term, adding that it has already prepared backup suppliers for parts used to manufacture its customers' products even as Japan's earthquake has caused shortages of components throughout the industry.
Even if component supplies do fall into shortage, Foxconn's capability of securing supply resources is still much better than its competitors, DigiTimes cites unnamed representatives of the company as saying. It added that "market watchers" are also pointing out that Foxconn should still have "about 2-3 weeks of component inventory left as IT players normally keep a certain level of inventory on hand for safety."
The iPhone and iPad manufacturer has reportedly been investigating the inventory levels of its component supply subsidiaries and reporting back to clients like Apple, all the while simultaneously activating its backup plans, those same market watchers pointed out. These plans reportedly include "increasing their orders to second-tier suppliers and finding other supply sources and replacement components."
Those same people also vouched their belief that if Japan's power brownout policy and radiation pollution can be resolved within a month, allowing affected plants to start operating, the problem should not land a material blow to Foxconn or the electronics makers it services. However, should Japan's problems worsen, every industry worldwide will be affected, they added.
Should a recent iSuppli report be believed, Apple and Foxconn may be most concerned about five specific iPad 2 components sourced from Japan, including three believed to be supplied exclusively by component makers based out of the region: an electronic compass, the touch screen overlay glass, and the battery.
An earlier report from PiperJaffray noted that the shutdown of at least two of Apple's Japanese component suppliers is likely to create shortages of the iPad 2 -- as well as the iPhone 4 -- into the June quarter.
Although it declined to comment on specific clients, Foxconn Electronics has reportedly emphasized that it will not see any component shortages in the short term, adding that it has already prepared backup suppliers for parts used to manufacture its customers' products even as Japan's earthquake has caused shortages of components throughout the industry.
Even if component supplies do fall into shortage, Foxconn's capability of securing supply resources is still much better than its competitors, DigiTimes cites unnamed representatives of the company as saying. It added that "market watchers" are also pointing out that Foxconn should still have "about 2-3 weeks of component inventory left as IT players normally keep a certain level of inventory on hand for safety."
The iPhone and iPad manufacturer has reportedly been investigating the inventory levels of its component supply subsidiaries and reporting back to clients like Apple, all the while simultaneously activating its backup plans, those same market watchers pointed out. These plans reportedly include "increasing their orders to second-tier suppliers and finding other supply sources and replacement components."
Those same people also vouched their belief that if Japan's power brownout policy and radiation pollution can be resolved within a month, allowing affected plants to start operating, the problem should not land a material blow to Foxconn or the electronics makers it services. However, should Japan's problems worsen, every industry worldwide will be affected, they added.
Should a recent iSuppli report be believed, Apple and Foxconn may be most concerned about five specific iPad 2 components sourced from Japan, including three believed to be supplied exclusively by component makers based out of the region: an electronic compass, the touch screen overlay glass, and the battery.
An earlier report from PiperJaffray noted that the shutdown of at least two of Apple's Japanese component suppliers is likely to create shortages of the iPad 2 -- as well as the iPhone 4 -- into the June quarter.
Comments
Forget the iPad already. Just get a MacBook. It's a way better experience anyway.
What kind of retarded comment is that?
I already have a macbook, and a powerbook, and an imac, and a powermac and a hackintosh and a few other macs also.
It's the touchscreen that makes the ipad attractive.
Forget the iPad already. Just get a MacBook. It's a way better experience anyway.
Yeah! 3 times the cost AND weight, but 1/3 the wait.
And what does this mean for my iPad that's supposed to ship in 4-5 weeks?
I was at the Apple Store last night and there were alot of frustrated people there. Some had shown up 3-4 mornings in a row to try and get an iPad with no luck. If find it interesting that the shortages are always iOS devices.
They had plenty of smart covers in all colors just no iPads to go with them. This was a US only release so far right?
Yeah! 3 times the cost AND weight, but 1/3 the wait.
And 1/5 the portability.
This was a US only release so far right?
Yeah, the international release is in 1 week from today, 3/25.
And what does this mean for my iPad that's supposed to ship in 4-5 weeks?
I was wondering the same thing. I'm in the same boat. I wish I hadn't hesitated and just ordered the day they came out!
Wow, that title needs a fix: "Apple has have enough..."
There are many more errors in this post. It is one of the worst written stories I've ever seen on AI. Don't expect Reuters to pick up on this one.
Hire a freaking editor! The frequent grammar errors I see here are really rediculous.
I take it your misspelling of ridiculous was intentional, correct.
I was wondering the same thing. I'm in the same boat. I wish I hadn't hesitated and just ordered the day they came out!
Same here. I had no idea that it was going to be this crazy. I don't think that anybody did. But oh well, I guess that there's nothing that we can do about it. I do blame those damn scalpers though, otherwise I would have had mine already.
I'd suspect that Japanese component manufacturers can shift manufacturing to other plant not affected by the earthquakes. I'd be shocked if they couldn't.
I was in the 'iPad Ships 5-7' club.
Apple has have enough iPad 2 components to maintain production for 2-3 weeks
They does do?
They does do?
HALARIOUS DUH,
i needed that, high stress day
In short, they assemble for each country and as they stager the releases they can build up continued supply for prior countries.
They never assemble solely for one country in a linear progression.
They does do?
They does do da... duh!