Rumor: Second manufacturer needed for iPad?

A second manufacturer for Apple's best selling iPad device may be in the works to help Apple boost production of the product. Digitimes reports via unnamed sources that Apple is looking at companies such as Quanta Computer and Pegatron Technology to help make the third generation version of the iPad. The second company will reportedly help assemble the iPad in addition to Foxconn Electronics.

The story states that one of the reasons for looking for a second maker for the iPad is the explosion at a Foxconn plant in May in Chengdu, China. That accidental blast killed three workers at the plant and injured 15 others. Many analysts predicted that the explosion might slow down iPad shipments and therefore sales of the product. Now Digitimes states, "The accident has forced Apple to seek a second contractor in order to minimize production risk."

This report comes as Internet reports have been flying around concerning either the launch of an iPad 3 later this year or perhaps an "iPad HD" that will increase the screen resolution to 2048 x 1536. Digitimes is still claiming that the new version of the iPad, whatever it might have inside in terms of features will be released sometime either in the third quarter or perhaps early in the fourth quarter of 2011. Apple is expected to launch the fifth generation version of the iPhone in September as well as its annual refresh of its iPod media player family of products. As usual Apple has yet to comment on these latest rumors and unsourced reports.

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Navan said,
Dang, a new iPad already? surely gonna **** off iPad 2 customers.

Pretty sure apple wont be releasing the 3rd gen iPad this year..may be early next year..they always upgrade each product once per year

If they change this upgrade cycle, i'm gonna be an angry iPad 2 customer

Navan said,
Dang, a new iPad already? surely gonna **** off iPad 2 customers.

Indeed, I just got one and will be uber ****ed if they release iPad 3 within a few months.

Soon they'll need another processor manufacturer too. It's not easy to churn processors for someone while being busy being sued by him.

RealFduch said,
Soon they'll need another processor manufacturer too. It's not easy to churn processors for someone while being busy being sued by him.

Yes it is. For displays, processors, and memory Apple is paying nearly 8 billion for parts to Samsung.

Samsung's best Q2 year was roughly 4 billion dollars USD across everything they do (televisions, mp3 players, refrigerators, container ships, power plants, etc), a typical average is closer to 9b/year.

What executive goes to the board of directors and says:

• We're defaulting on a contract that is worth more than all of the profit we made last year.
• We're ensuring we never get another contract from the largest buyer of several of our key products.
• We've sent a message to every other company that we're not a trustworthy supplier
• We've handed our biggest client over to our direct competitors
• We're liable for billions of dollars in contract failure penalties
• And we've got excess production capacity for the next 3 years along with a standing inventory that went from being worth millions to costing us millions in storage -- an inventory that's become worth less and less every day we sit on it, and no way to get rid of the stuff.
• We've made ourselves targets for anti-competition investigations in all of the richest markets on earth.

Not only would such an action never pass - the people who even proposed it would be fired and possibly at the wrong end of civil suits from investors for shirking their duty to act in the best interests of shareholders.

* Sources are Samsung's 10k report for 2010 and statements by Tim Cook on Apple's investor conference call in January.

Edited by the evn show, Jul 11 2011, 6:36pm :