After Japan’s earthquake, price of electronic components in the global market shot up assuming component shortages and things do not look so good as Japan’s Nuclear reactor problem is getting worse.
Apple is one of the major companies suffering from Japan’s earth quake. On March 17, 2011, Andrew Rassweiler of iSuppli published a thorough report which revealed that Apple iPad 2 will be seriously affected by the Japanese earthquake. A teardown analysis of iPad 2 by the firm found out that the device has five major components supplied from Japan- NAND flash memory from Toshiba Corp., DRAM from Elpida Memory Inc., electronic compass from AKM Semiconductor, touchscreen overlay glass Asahi Glass Co. and system battery from Apple Japan Inc.
Rassweiler said that Apple can acquire its NAND and DRAM from Samsung and Micron. He also said that finding alternatives for the battery, compass and glasses will not be so easy.
Hon Hai, the Taiwanese electronics giant, that assembles Apple iPads for China, said that it has ample supply of parts in hand. This announcement resulted into surge in the company’s stock price.