Foxconn Plant Closure Could Impact iPhone 5 Production

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Foxconn has temporarily closed one of its assembly plants after a riot broke out in northern China, sparking concerns about the affect this might have on Apple's
AAPL
iPhone 5.
According to
Reuters
, the riot involved roughly 2,000 workers and as many as 5,000 police, who were sent to a Foxconn dormitory at a plant in Taiyuan to put an end to the violence. Hon Hai Precision Industry Co., the parent company of Foxconn, has not said which of its plants assemble Apple products or components. The Taiyuan plant is believed to be one of the Foxconn facilities that produces the iPhone 5, which was released in the United States last week. Thus far, demand for the iPhone 5 has caused Apple to
delay the shipping date
for many iPhone 5 orders placed online. The company confirmed the supply shortage after announcing that
more than two million pre-orders
were placed in just 24 hours. AT&T
T
is among the many carriers that have
reaped the benefits
of the iPhone 5's release. In addition to the device itself, consumers are also purchasing the new Lightning connector for the iPhone 5, creating a
shortage
for that as well. When the device was finally released at 8:00 a.m. on Friday, consumers lined up all over the world, with
self-proclaimed iPhone groupies
leading the charge. The device has already broken international sales records and is expected to push Apple's stock
above $850
. One study suggests that the lines of people waiting for the iPhone 5 were
83 percent longer than the lines for the iPhone 4S
. Despite these and other success stories, there have been a few blemishes that kept the iPhone 5 from achieving a flawless launch. On the day the product was released, SBB, the national railway of Switzerland,
expressed its disappointment
with Apple for copying the design of its famous clock. Last week, consumers and tech bloggers began to
share their complaints
about the new Maps App, which replaced Google
GOOG
Maps after Apple decided not to renew its contract with the search engine giant. Despite these issues, the iPhone 5 is still expected to
continue breaking sales records
.
Follow me @LouisBedigianBZ
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