An analyst sketches out the economic implications in two scenarios: One serious, one less so
According to Abramsky, the plant is one of two primary manufacturing sites where the iPad 2 is produced, the other being Foxconn’s original Shenzhen facility. His sources disagree, however, about the two plants’ relative importance. Some believe the majority of iPads were being manufactured at Chengdu; others say that Chengdu was having trouble ramping up, and that the majority of iPads were still being manufactured in Shenzhen.
Accordingly, he offers two scenarios: (I quote)
The fact that Apple’s shares dropped only 1% on Friday suggests to Abramsky that investors are pricing in scenario 1. (Apple fell another 0.5% to close the day at $335.22.)
For videos of the aftermath, see here.