Apple could face iPad 2 component shortages

Mar 18, 2011
Customers try the latest Ipad 2 at the Apple store on Fifth Avenue in New York. Apple could face shortages of components for the iPad 2 because of the earthquake and tsunami in Japan, according to a research firm.

Apple could face shortages of components for the iPad 2 because of the earthquake and tsunami in Japan, according to a research firm.

"The aftermath of the Japanese earthquake may cause logistical disruptions and supply shortages in Inc.'s iPad 2, which employs several components manufactured in the disaster-stricken country," IHS iSuppli said.

IHS iSuppli, which conducted a "teardown" analysis of the iPad 2, said the components included the battery from Apple Japan, an electronic compass from AKM Semiconductor, NAND from Toshiba, DRAM dynamic random access memory from Elpida Memory and touchscreen glass "likely" from Asahi Glass.

It said some of the suppliers were undamaged but they were likely to face logistical difficulties as well as problems getting raw materials.

"The various challenges are being compounded by interruptions in the electricity supply, which can have a major impact on delicate processes, such as semiconductor lithography," IHS iSuppli said.

"These issues may come at a time when Apple is rushing to ramp up iPad 2 production to meet stronger-than expected demand for the device," it added.

IHS iSuppli said some of the components could be sourced elsewhere. It said NAND flash memory, for example, is available from South Korea's Samsung and Micron Technology of the United States.

"Similarly, the Elpida component can be alternatively sourced from Samsung," it said.

The iPad 2 went on sale in the United States a week ago and is scheduled to hit stores in around two dozen other countries on March 25.

Apple announced this week it was delaying the release of the in Japan because of the disaster.

Apple shares shed 1.19 percent on Wall Street on Friday to close at $330.67.

Explore further: Samsung accuses LG execs of damaging its products

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