Everyone?s favorite Taiwanese tech website is back with a pair of rumors claiming that favored Apple manufacturer Foxconn is getting hit with a double whammy of both component and labor shortages which are creating headaches for supplying iPhones and iPads alike.
MacRumors is reporting that Apple is facing the possibility of further iPad and even iPhone shortages due to ongoing labor and component shortages at Foxconn, the Chinese manufacturer for most of the company?s iconic products. According to DigiTimes, the problem is further complicated by the ongoing supply chain limits following the Japanese earthquake, with most companies having already used up any reserves on hand.
?Taiwan-based electronics manufacturing service (EMS) provider Foxconn Electronics (Hon Hai Precision Industry) is reportedly facing a shortage of both labor and materials at its plants in Chengdu, China, which is likely to affect shipments of iPad 2 and iPhone 4 orders in the second quarter, according to sources from upstream component makers,? DigiTimes reports.
The report claims that Foxconn had intended to have 52 production lines at the company?s Chengdu plant strictly dedicated to the iPad, capable of ?at least? 40 million units per year. ?Component shortages and labor issues? have complicated things, with Foxconn missing Apple?s current demands of 2.5 to three million units each month.
The earthquake in Japan hasn?t helped matter, sources reveal, with manufacturers depleting their stockpiles of components even as they attempt to downplay the problem for fear that suppliers might take advantage of the situation and raise prices.
?The sources pointed out that PC- and smartphone-related players have all claimed to have not seen any supply issues after the earthquake because of concerns that it might cause upstream players to panic and even raise their product prices, while trying to prevent the subject from impacting their new product launches,? the report claims. ?However, most of these makers have all been working on stocking their component inventory behind the scenes, the sources added.?
?The sources noted that several component suppliers are already close to having shortages with the real challenge expected to hit in June,? the report continues. ?The shortage crisis is also expected to bring issues such as rising costs and an increased rate of defective products in the future.?
Such headaches are the last thing Apple needs at the moment, with both the iPhone and iPad facing such heavy demand this year.
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