iPad 2 production delayed by Foxconn explosion?

According to IHS iSuppli, if the explosion results in the shutdown of the Foxconn facility until the end of June, production of 500,000 units could be halted. While most iPad 2 production takes place at Foxconn's Shenzhen facility, IHS believes that plant may not be able to compensate for the lost output of the Chengdu site in the second quarter. The Shenzhen site has the capacity to produce 7.5million units in the second quarter and IHS forecasts 7.4m iPad 2 units will be shipped during this period. To support this shipment, the market analyst says Foxconn must manufacture a larger amount of devices – up to 8.1m units during the second quarter. This means that Foxconn's shipments could fall short of expected levels by up to 600,000 units in the second quarter. While IHS believes the impact of the disaster to be a short term issue, the Chengdu plant accounts for approximately 20% production of the iPad series. The shortage of raw components following the Japanese earthquake in March has also slowed down production at the Chengdu plant. The explosion at Foxconn is just the latest in a long list of problems for the company. It recently endured a spate of suicides which many blamed on poor working conditions. A total of 16 people leapt from the company's high buildings, resulting in 12 deaths. Another 20 people were stopped by the company before they could make similar attempts. Further controversy arose when the company's chairman, Terry Gou, hired Buddhist monks to pray for the workers and announced plans to build nets around the dormitories to catch any jumping employees. IHS believes that until more information is made available about the cause of the explosion, it's unclear how the disaster will impact the relationship between Apple and Foxconn. The Wall Street Journal reports that the company has now closed all of its workshops that handle polishing for electronic parts, pending further inspections.