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Apple will absorb extra costs to ensure timely shipments of iPad 2 parts from Japan

Posted by Andru Edwards Categories: Apple, Corporate News, Handhelds

iPad 2 parts

Apple is prepared to eat some extra costs from Japanese upstream component makers in order to avoid further shipping delays for the iPad 2.

According to a DigiTimes report, Japan has implemented a power brownout policy that is seriously hindering the production of upstream component makers in the country. However, Apple has agreed to absorb additional costs to ensure "smooth shipping" from the suppliers. In return, these Japanese companies are expected to see minimal negative affects on their profit margins.

AppleInsider pointed out an iSuppli report from earlier this month that said there are five key iPad components likely produced in Japan, including the device's battery, dynamic random access memory (DRAM), NAND flash, electronic compass, and the touch screen overlay glass.

Click to continue reading Apple will absorb extra costs to ensure timely shipments of iPad 2 parts from Japan


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