Japan quake hits iPod battery supply
The sky is falling. Well, a small corner of the sky threatening to come down. That is, the analysts who after weeks of furtively throwing out headlines have uncovered a realistic scenario in which Apple might feel uncomfortable as a result of the Japan earthquake.
According to the Wall Street Journal, Kureha Corporation’s factory has been shutdown since the March 11 earthquake and tsunami struck Japan. Further, as the facility is very close to the quake’s epicenter and just down the coast (37 miles) from the Fukashima Daiichi nuclear plant, it probably won’t be opening anytime soon.
This plant is important for Apple and likely scores of other electronics makers because it produces 70 percent of the world’s supply of a polymer — polyvinylidene fluoride (PVDF) — critical to lithium-ion battery manufacturing, specifically the type of battery used in iPods.
“After the disaster, we got so many calls—’How much inventory do you have?’ and, ‘How quickly can you send it to us?’ ” said Kureha CEO Takao Iwasaki. “Even before this disaster, we were already thinking about shifting some of our production to the States and China. We will now accelerate these plans.”
Although the plant itself came through the events of March 11 relatively unscathed, damage at a nearby port and ongoing power supply issues haven’t allowed a return to production.
That said, if Apple loses iPod production, it stands to reason that competitors will be left in the same predicament and/or be faced with increase demand for the parts they use. Also, the mothership’s mindshare in the media player market likely means the company could go for a period without adequate supply and still retain market share…
What’s your take?
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