Foxconn May Not Be Able To Fulfill iPad 2 and iPhone 4 Supply Chain Needs In The Second Quarter


Despite that Foxconn employees constantly work around the clock, they might have shortage of labor and materials at their plants to fulfill the demand of the iPad 2 and iPhone 4 orders in the second quarter.

Apple sold 18.6 million iPhones in the first quarter of 2011. This is up from 16.2 million units in the fourth quarter of 2010. Apple is estimating 20-22 million iPhone sales in the second quarter of 2011.

Below is an excerpt from DigiTimes, who has close relations to sources at the plants in China:

“As for Foxconn’s plants in Chengdu, which are used mainly for iPad 2 manufacturing, although the company planned 52 production lines at the plants for manufacturing iPad with annual capacity already surpassing 40 million units, as Japan’s earthquake seriously impacted component supplies such as power amplifiers and memory to the plants, while the plants’ labor is also falling short, supplies of iPad 2 are still mainly from its plants in Shenzhen. As a result, Foxconn may have difficulty in satisfying Apple’s demand for supplying an average of 2.5-3 million units of iPad 2 each month in the second quarter, the sources noted.”

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