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Holiday plans? Apple & Foxconn increase iPad production capacity

Apple’s iPad production is nearing three million units every month in the lead-in to Christmas, with manufacturing partner, Foxconn, opening aditional capacity in its new plants in Chengdu, China.

The new production lines are limited at present, churning out 10,000 iPads each day, but the capacity has been bought onstream to satisfy demand, Digitimes reports.

“Foxconn had previously refuted claims that the company would establish iPad production lines at the plants in Chengdu, but related component players have pointed out that Foxconn already started shipping iPads from the site in November and expected the site to become a major supply base starting the first quarter of 2011.”

Foxconn’s main iPad factory in Shenzen is currently capable of making 2.5 million iPads per month, add the additional supply in and we’re looking closer to 3 million ech month. Production volume varies though depending on supply of components, “such as touchscreen modules or panels,” the report says.

That’s a big hint that component supply continues to mar the tablet dreams of Apple competitors.

Apple is expected to ship 7 million iPads in the current quarter, with maybe 15 million sales next year. Foxconn will eventually ramp up manufacture to a capacity of 40 million units.

Meanwhile, iPad 2 is on the way. This is expected to be slimmer, lighter and faster with Facetime cameras. It should ship by April, analysts agree.

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