Home News Apple Prepares Itself For Components Shortage

Days after reports revealing that Apple iPad 2 might face a delay in supply, it seems that Apple along with its Taiwanese manufacturing partner Foxconn has piled up enough components to continue to assemble new iPad 2’s for at least another 2 to 3 weeks before they run out of components,  if the prevailing condition in Japan does not get any better.

Foxconn Electronics has reportedly highlighted that it will not experience any component shortages for a short term and it has already prepared standby suppliers for parts used to manufacture its customer’s products. Even if the company faces scarcity of components, Foxconn’s capability of securing supply sources looks much brighter and better.  iPad and iPhone manufacturers are investigating the inventory levels of component supply subsidiaries and they are keeping their clients like Apple posted on the status. On the other side, back up plans have also been activated. Strategies are being formulated to include increasing their orders to secondary level suppliers and finding other sources of supply and replacement components.

It is  also said that Japan’s power brownout policy and radiation pollution can be resolved within a month which will allow the crippled plants to start operating and reassured that this condition wouldn’t be a blow to Foxconn. On the other hand if Japan’s problems don’t get any better, every industry worldwide will be affected.

If a recent report from iSuppli proves to be true then Apple and Foxconn have all reasons to be worried about 5 precise iPad 2 components like the NAND flash from Toshiba Corp,   dynamic random access memory (DRAM) made by Elpida Memory Inc., an electronic compass from AKM Semiconductor, the touch screen overlay glass likely from Asahi Glass Co and the system battery from Apple Japan Inc. While reports say that some of the facilities were undamaged, delivery of components from all of these companies is likely to be affected at least to some degree by transportation issues. Analysts predict that with the shutdown of at least 2 Apple’s Japanese component suppliers might cause shortages of the iPad 2 as well as iPhone 4 into the June quarter.

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