Apple MacBook Component Factory in China Still Shut Down

Chinese authorities continue to inspect a factory that produces aluminum casings for Apple's MacBook laptops, following residents' complaints of unbearable odors coming from the facility.
Apple's MacBook inventories, however, appear so far to be unaffected by the factory's temporary shutdown, according to one analyst.

In mid-October, Taiwan-based Catcher Technology announced that it had stopped production at its factory in Suzhou, China. Authorities have since been inspecting the factory to ensure its manufacturing processes will not emit any strong odors that will affect nearby residents.

Catcher could not be reached for comment. The company said in a Taiwan Stock Exchange filing on Wednesday that authorities are still inspecting the factory. In an earlier filing, the company said that its October sales revenue would be down by 20 percent, and November sales by 40 percent, if the factory could not be restarted in time.

Local Chinese authorities have been working to improve and test the factory's waste-gas treatment systems, according to Yee Fang, a spokeswoman with the Suzhou Industrial Park Administrative Committee. The authorities have nothing new to report at this time, she added.

Helen Chiang, an analyst with research firm IDC, said Apple appears to have mitigated the effectof the factory's outage as it shifted production to its other supplier. "It's been controllable at this point," she said. Apple's MacBook demand for the fourth quarter is also forecast to be less than the third quarter, Chiang added.

Apple declined to comment.

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