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Limited Supply of Retina Displays and New Foxconn Labour Code Affects iPad Supplies

Maura

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AppleInsider reports today that although Apple seems to have generally been doing a sound job of getting new iPads onto the shelves, it appears that it could have done even better, and sold even more new iPads, if it had not been for two major factors, according to Sterne Agee analyst Shaw Wu. In a note today, Wu says that there is no truth to the rumour that demand for the new iPad is decreasing; he says that he has checked with sources in Apple’s supply chain and found that there is still a great deal of consumer interest in the new iPad. Wu says that the problem lies in a different direction, with limited supplies of the new iPad’s Retina display affecting shipments. Wu says he believes that this situation will improve over the next few months, with Apple adding more suppliers to its production chain. Wu also says that the fact that Foxconn is now “conforming to more sound labor practicesâ€, such as not having employees work such long hours anymore, has also had an effect on shipping numbers for the new iPad, but in this instance it must surely be a good thing that workers now have better working conditions. However, Wu says that although you would think that would be the case, some employees are saying that they are actually missing the chance to work more overtime.

Source: Apple's new iPad constrained by Retina display supply, 'sound labor practices'
 

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