Foxconn Expands for Mass Production of iPad

[Michael Essany]

Recent rumors of Foxconn adding new production plants to ramp up production of the iPad have proven to be accurate, as Tuesday morning brings word of the Chinese-based Apple manufacturing partner bringing enormous production facilities online in Chengdu to rapidly accelerate iPad manufacturing. As demand of the tablet increases with each passing day in the beginning rush of this holiday shopping season, it is estimated that Foxconn will be able to successfully turn out an additional 10,000 iPads per day.

Foxconn, of course, has a long history of denying expansion rumors when all signs point to just that. Yet again, the pattern of denials had continued prior to this morning's DigiTimes report spilling the beans that all is on target to make the new Foxconn site "a major supply base starting the first quarter of 2011." The addition of the new facilities will boost monthly iPad production substantially on a monthly basis. At present, the bulk of iPad supplies still come from Foxconn's plants at Shenzhen, China, which - at maximum - can supply 2.5 million units maximum per month.

The increased production capacity, naturally, begs the question as to how much of this new capacity will be dedicated to the 2nd generation iPad. For now, that answer isn't clear. But it is a virtual guarantee that Foxconn's holiday season ramp up won't slow after the first of the year. Analysts maintain that an updated iPad will be unveiled in the first quarter of 2011 and Foxconn will have no choice but to immediately shift gears and begin work on the 2nd generation iPad.

DigiTimes

[tudtran]

wow

[CaptainChaos]

This is awesome for them. And for the end user. It still irks me though that these factories aren't being built in the U.S.

[MetallicaFan1991]

As long as their good quality, I don't mind where their built but I wish Japanese companies especially Sony still made the stuff in Japan and not China. It should be dedicated for iPad 2 as iPad is now available anywhere. Just at release it was out of stock everywhere so yeah it'll be so there won't be iPad 2 shortages on release like this year.

[madczech]

It still irks me though that these factories aren't being built in the U.S.

just wouldn't make any sense from the economical point of view...

[Throne030]

True , Why waste triple the money if you can produce it somewhere else ?

[CaptainChaos]

just wouldn't make any sense from the economical point of view...

So it doesn't make sense economically to bring jobs back to the U.S.? But that isn't what we are here to discuss. This factory will help ease the demand for the new iPad for sure.

[iRepairIndy]

I agree with the location of production comments. Apple has 40billion + in the bank. How about they invest some money back into our economy and produce the products here.

[woowoodengy]

The problem with USA based is that people won't work for less than minimum wage and will rather get medicare/welfare/link/unemployment etc. Although I know that it's hard to live off of a couple bucks an hour it would work say if a company employes you for let's say $2-$5 and the government helps with the rest. This would save many businesses and save billions for the government. But then they will just spend the savings on pork and themselves. Sorry for the rant. But it's defiantly possible to bring biZ back to the USA with clever thinking. Oops we are talking about the government so I meant sneaky instead of cleaver =)

[BSmith]

I agree with the location of production comments. Apple has 40billion + in the bank. How about they invest some money back into our economy and produce the products here.

How about they keep the money and keep doing what they do. Businesses are motivated by profit, period. They owe it to no one to build it here and waste profit. They do owe it to their shareholders to produce it for the cheapest.

$40bil wouldn't even begin to make a difference in our screwed up economy. Ask Obama how much he pissed away and it still didn't do anything.

[organik]

If anybody could move manufacturing to the US and make it work, it would be Apple. Would be a fantastic PR move for one, and Apple customers already pay a premium for slick design, I for one wouldn't mind paying slightly more to give a fellow American a job.

Repeal the REAGAN tax cuts! Repeal Nafta! Single Payer! Bring back protectionist trade policies that worked for most of our history, before Reagan (and Clinton to be fair), dismantled them.

/rant

[Zeal]

The amount of money the owner of Foxconn must have must be mind boggling

[Gyngabread Man]

if they were built here we would be looking at $2000 ipads yay

[maddawg05]

1. What's the motive for the denials of expansion?

2. Building overseas keeps pricing for consumer lower, yes....no US jobs but people spending buying the units still does help with the economy....it sucks but companies are not in the business to lose money.

[leathelisor]

So it doesn't make sense economically to bring jobs back to the U.S.? But that isn't what we are here to discuss. This factory will help ease the demand for the new iPad for sure.

You do realize Foxconn is a sweatshop right? O ya, i forgot. ALMIGHTY LORD STEVE said it wasn't one so we all believe him.....those 11 chinese deaths aren't imporant. Have fun finding americans do do work in those conditions

[FrankyMcGee]

if they were built here we would be looking at $2000 ipads yay

Exactly. If they had the factories in USA, their overheads would be significantly higher, resulting in more expensive products. Jobs is crazy..... but not that crazy

[EskimoRuler]

More iPads the better

[whduckie]

Why worry if it is $2k or $20k? Can just print more US Bills and let the rest of the world suffer the consequences.

[jarlerc]

Because if there is no jobs at all left in the US, then in the end there will be no customers! And the whole thing just collapses...
So again, if you selfishly just consider how cheap it is possible to buy an Ipad, I see your point, but when you export your entire production of goods and many services. Then there will not be any more customers to buy the products. Henry Ford understood this, current capitalists do not