Japan Quake expected to impact on Technology sector in next 3 months

March 22, 2011

Japan is a major supplier to the technology industry around the globe and the latest information is emerging from manufacturers expected to be facing disruption to the supply chain in the next quarter as a direct result of the earthquake and Tsunami that occurred in Japan according to Malcolm Penn, chief executive of research firm Future Horizons.

According to the BBC news site, Apple may have problems sourcing parts for its new iPad 2, analysts' research suggests. With Sony Ericsson saying that it would face similar problems with its mobile phones.
Among the iPad parts rumoured to be affected will be its flash memory - used for audio and video storage - and its super-thin battery, which is produced exclusively by Apple Japan according to a report. Affected iPad components may also include an in-built compass, DRAM memory and the glass overlaying the touchscreen. Apple has not yet commented on the report.

Other computer-makers may also be hit by shortages of laptop batteries after Sony has shut down five of its six factories in Japan. Liquid crystal displays used in mobile phones and satellite navigation may also be in short supply in three months’ time.

In addition, Toshiba has shut one of its two LCD plants to recalibrate sensitive equipment affected by the earthquake, as has Hitachi with its Tokyo factory because of damage caused by the Japanese quake and power cuts.

"In the short term, there won't be much impact," said chief executive Yang Yuanqing of Lenovo to the BBC. "We are more worried about the impact in the next quarter." The Chinese computer maker was not the only tech firm to indicate that there would be likely problems ahead.

http://www.bbc.co.uk/news/business-12782566

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