Existing iPad 2 components are only for production for three weeks

According to foreign media reports, Apple and its Taiwan production partner, Foxconn’s iPad 2 components, are only used to maintain production for two to three weeks. Two or three weeks later, if the situation in Japan is still not improved, the components of the reserve will be used up, causing the factory to stop production.

Foxconn stressed that although the earthquake in Japan caused a shortage of components throughout the industry, it can still supply sufficient components in the short term to meet Apple's production needs. It also added that it has arranged for spare component suppliers.

Taiwan’s DigiTimes magazine cited a spokesman for Foxconn who declined to be named as saying that even if there is a real shortage of components, Foxconn’s ability to secure supply channels is much stronger than its competitors. The magazine also said that "market analysts" also pointed out that Foxconn should "have two or three weeks of component inventory, because IT manufacturers will generally retain a certain amount of inventory, in case of need."

The above market analysts also pointed out that iPhone and iPad manufacturers have begun to investigate the inventory status of their component suppliers and provide timely feedback to Apple. At the same time, they also launched backup plans, including "raising the number of orders from secondary suppliers, looking for alternative supply channels, and finding alternative components."

Analysts also believe that if Japan's power-limiting policies and nuclear radiation pollution can be effectively resolved within a month, so that the factory to run again, then the problem of component shortage will not form a heavy blow to Foxconn and its customers Apple. However, if Japan's problems continue to deteriorate, then all walks of life around the world will be affected.

Market research company iSuppli recently released a report saying that Apple and Foxconn may be most worried about the five iPad 2 components produced in Japan. These include three components that are exclusively supplied by Japanese manufacturers: electronic compasses, touchscreen glass, and batteries.

Earlier, the securities company PiperJaffray also released a report that Apple has at least two Japanese component suppliers closed, which may cause the iPad 2 and iPhone 4 components shortage. This shortage of components may continue until June.