There could be a hitch in Apple's supply chain for products like the iPad and iPhone. Foxconn, a key Apple gadget manufacturer, is reportedly facing both labor and part shortages at its Chengdu, China factory.
According to Digitmes, the alleged shortage could cause a stall in shipments, particularly for the iPhone 4 and iPad 2.
Digitimes said Foxconn wouldn't directly address the issue, saying only that "the company's capacity is being arranged fully at the request of its clients." It would not say if the shortages would delay shipments. Foxconn also noted that "it has experience arranging manpower to assist its clients in reaching their goals."
But recent iPad news might be an indication that there truly is a problem with the supply chain. In its most recent earnings report, Apple disclosed a slump in iPad sales, down from 7.33 million units sold in the fourth quarter to 4.69 million units in the first. Apple chief operating officer Tim Cook said the company faces "the mother of all backlogs" with the iPad 2.
"I wish that we could have made a lot more iPad 2s, because there were a lot of people waiting for them," Cook said during the earnings call.
In fact, the Foxconn factory in question reportedly has 52 iPad production lines and it is said to be able to produce more than 40 million units a year.
Another reason for iPad 2 supply problems could be a leaky touch screen, but this glitch has reportedly been fixed.
Aside from Cook's comments, Apple has been silent on the matter.
Foxconn, meanwhile, made headlines in recent months after several of its employees committeed suicide, prompting a watchdog group to conduct an investigation into conditions in Chengdu and Zhengzhou. For more, see Foxconn Factories: How Bad Is It?