Rumor: Pegatron Explosion May Affect iPad Supply
21st Century Business Herald, 1/13/12
Industry rumor claims that the recent plant explosion and labor disputes at OEM manufacturer Pegatron could affect supply of Apple's next-generation iPad. Pegatron had reportedly won a large iPad order away from Taiwanese electronics manufacturer Foxconn (2038.HK; 2354.TW), as well as a contract for some of the iPad 3 tablets rumored to be slated for a March release, as well as a larger contract, estimated at 7 mln to 10 mln units, for the subsequent iPad 4.
Pegatron chairman Tong Zixian said recently that all of the production lines affected by the explosion had been repaired and that shipments would not be affected. Plant workers, however, said that reopening of the plant had been moved back from the initial January 13 date to January 18, and that it was unclear how many production lines would be reopened.
Editor's Note: For more background on this topic, please see "Explosion at Apple OEM Plant Injures 61" MD 12/30/11 issue.
Keywords: consumer electronics Tong Zixian production facility hardware Pegatron Apple OEM iPad computer contract manufacturer tablet
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