Two Die In Foxconn Assembly Plant Explosion

20.05.2011

Impact on Apple

Forbes the Chengdu plant may be one of two main manufacturing sites for the iPad 2, although the facility's exact importance is unclear at this time.

RBC Capital analyst Mike Abramsky says the blast could impact Apple in one of two ways. If the Chengdu facility does make the majority of iPads, Apple could have a serious problem meeting its iPad 2 production goals this quarter. However, if another plant in Shenzhen builds most of the tablets, the impact will be minimal.

Friday's Chengdu fire is the latest in a series of public embarrassments for Foxconn, which has been criticized repeatedly by human rights groups in recent years for its alleged at its plants.

A series of suicides at Foxconn's Shenzhen massive plant, which employs more than 300,000 workers, grabbed news headlines last year. The company said it would to help stop the suicides.