Apple comments on supply chain issues in Japan

Wed, Apr 20, 2011


During Apple’s earnings conference call, Tim Cook was asked how the Japan earthquakes have affected Apple’s ability to source components for its products.

Cook responded, “It’s an Incredible tragedy. Apple has a long history and strong ties to people in Japan. We are very saddened. Regarding our business in Japan. Some revenue impact, but not material in consolidated results. Regarding global supply train, we did not have any supply or cost impact in our fiscal Q2 as a reslut of the tragedy, and do not anticipate any material impact in Q3. We sourced hundreds of items in Japan, ranging from LCDs, optical drives, NAND flash, resin coatings, foil. The earthquake/crisis caused disruption to many of these suppliers. But since the disaster, Apple employees have been working around the clock with suppliers and implemented a number of contingency plans. Our partners have displayed an incredible resilience that I’ve personally never seen before There are some supply risks that are beyond the current quarter, but the situation is still uncertain, so it’s difficult to predict beyond Q3.”


Comments are closed.

eXTReMe Tracker