New iPad Production Lines Open For Holiday Demand

Foxconn is reported to have opened up new plants in Chengdu, China to cater to ever growing demand for iPad that is expected to peak during the Christmas holiday season. The plant is producing only around 10,000 units a day at the moment. But that is expected to pick up over the next few months with the new plant expected to serve as a major supply hub by Q1, 2011. The annual capacity at that point is expected to be around 40 million units.

For a perspective on how Apple sees the demand for iPads growing, consider this. All the iPads supplied till now have come from Foxconn’s Shenzhen plant that has a monthly capacity of 2.5 million units. Do the math, and you know this is smaller than what the new Chengdu plant will serve.

Apple’s next generation iPad is expected to launch in April 2011 and the new plant should be running at full capacity by that time.