Feeds

LG fiddles while Mexico iMac plant burns

Will Apple's Q3 results be affected?

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

Apple's iMac production programme was hit last week by a major fire at LG Electronics' Mexicali, Mexico plant. Damage from the fire itself, reported by the AppleInsider Web site, and the water used to put it out, forced the closure of the plant for "at least a month", according to LG sources quoted by the site. Quite what the effect on Apple's sales will be remains to be seen, however, but it's unlikely to be as bad as some Apple watchers have claimed. The Mexicali plant began punching out iMacs as part of a deal Apple struck earlier this year to outsource iMac production to LG (see Apple tight-lipped on LG's iMac production deal and Apple axes 450 jobs in Cork, Ireland). Any impact on the company itself is likely to be taken in its Q3 1999 results -- Q2 ended on the day of the fire, 27 March -- largely thanks to a reduction in the number of iMacs in Apple's various sales channels. That said, the whole point of the LG deal was to give Apple access to LG's economies of scale. Assuming Apple has signed LG to supply x iMacs per month (say), LG will have to do so, even if those machines must come from its plants in Europe and the Far East. And if those machines cost more to produce as a result, well, that's technically LG's problem, not Apple's. This is, after all, why factories are insured. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.