Apple to absorb cost changes for iPad 2 components
updated 11:35 pm EDT, Wed March 30, 2011
Shortages may still affect production by June
Apple has allegedly agreed to absorb any inflation in component costs due to the earthquake and tsunami in Japan, suppliers have told DigiTimes. The company is pushing a strategy that may give it supply priority over other companies that cannot accommodate the potential cost increases, as suppliers will not have to shrink margins for components used in Apple products.
Despite efforts to ensure a steady supply in the near term, the sources suggest certain components, such as anisotropic conductive films (ACF) and indium tin oxide (ITO) materials, may nonetheless run short by June.
Apple is said to be pushing its iPad 2 shipments up to four million monthly units in the second quarter of the year. Analysts so far have disagreed over the potential impact of the crisis in Japan, leading to volatility in Apple's stock valuation.
Via Facebook
Joined: Mar 2011
Similar story
Among those materials expected to be in short supply until at least June are anisotropic conductive films (ACF) and indium tin oxide (ITO) materials.
With their plan Apple will push iPad 2 shipment numbers up to four million units per month for the second quarter of 2011. The move by Apple could also help stabilize the company’s stock which has been going through a volatile period since the Japan disaster.