Apple iPad 2

Apple Absorbs iPad 2 Component Change Costs Caused By Japan Earthquake

On Wednesday Apple announced that they will absorb supplier costs caused by the need for components changes due to the Japan earthquake and proceeding tsunami.

According to DigiTimes, Apple’s strategy is to gain priority supply placement that other company’s can’t afford to control due to cost increases caused by supply shortages.

Among those materials expected to be in short supply until at least June are anisotropic conductive films (ACF) and indium tin oxide (ITO) materials.

With their plan Apple will push iPad 2 shipment numbers up to four million units per month for the second quarter of 2011. The move by Apple could also help stabilize the company’s stock which has been going through a volatile period since the Japan disaster.