Production of 500,000 iPad 2 Units at Risk from Foxconn Plant Explosion

We recently reported on the unfortunate event which took place in one of Foxconn’s plant located in Chengdu, China. The explosion claimed lives of three workers and many were injured because of the flammable dust used for polishing iPad 2 display.

Earlier today IHS iSupply issued a report and estimated that the explosion could result in a production loss of half-million iPad 2 units.

Foxconn chairman Terry Gou reportedly said that the explosion will not delay the production of the iPad in the third quarter. However, IHS iSuppli believes this view is dependent on a return to full production pending the results of an investigation. IHS iSuppli research indicates there likely will be some impact on production in the second quarter.

The research firm also notes that while most iPad 2 production takes place at the manufacturing plant located in Shenzhen, it may not be adequately be able to compensate for the lost output.

According to Wall Street analyst Apple’s tablet production could fall by 2.8 million units and further result in manufacturing drop by 36% in the third quarter.

Apple Inc. hasn’t issued any official statement regarding any special shortages. However, the Cupertino Calif. based company is certainly looking into the cause of explosion and making sure that production can be resumed as soon as the situation improves.

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