Apple's largest production partner, Foxconn, has plans to build five new production plants in Brazil to help support the growing demand for the iPad tablet.

Officials from Foxconn and the Brazilian government will reportedly meet following the Chinese New Year to decide on where the factories will be built, but São Paulo is said to be pushing heavily for the investment. [...] In addition to helping supply Apple with iPads, the factories will be tooled for notebook and general electronics production. [...] A Foxconn representative declined to confirm its Brazilian expansion plans to Economia, calling the report "pure speculation."

This news comes shortly after iPad production in Brazil got a generous tax break from local government following Foxconn reportedly investing up to $300 million in a São Paulo factory. The new production facilities could house up to 1,000 employees each, with officials from Foxconn and the Brazilian government said to be meeting after the Chinese New Year in order to make a final decision on the desired location.

With Apple selling through over 15 million iPads during Q1 2012, increasing production to help meet future demand is a no-brainer. And although Brazilian-made iPads may be a little behind schedule, adding more facilities to the mix can only help the situation in terms of availability.

Source: Folha via AppleInsider

Bloomberg reports that Apple has cut iPad 2 orders from Foxconn in China by up to 25%, which likely indicates Apple shifting production to the new Brazilian plant, according to JPMorgan analyst Mark Moskowitz.

Several supply-chain vendors indicated in the past two weeks that Apple lowered fourth-quarter iPad orders 25 percent, the first such cut that analysts at JPMorgan’s electronic manufacturing services team in Hong Kong said they have ever seen. The report didn’t list the affected companies, and Gokul Hariharan, one of the report’s authors, said he couldn’t comment when reached by Bloomberg News today.

We think it's a bit premature to pin this on Apple gearing up for iPad 3 production, as TiPb recently heard Apple had returned iPad 3 to the traditional spring schedule. Instead, the idea of Apple shifting production to the new plant seems more likely. Earlier this month, The Brazilian Minister of Science and Technology, Aolizio Mercadante, has confirmed that the new Foxconn factory in Jundiai Brazil is up and running.

Moskowitz believes Apple will sell between 10.9 and 12 million iPads during the 4th quarter, up from 9.25 million in Q3.

Source: Bloomberg

A new rumor says Apple may be seeing supply constraints for the iPad 2 and iPhone 4 due to material and labor shortages at a Foxconn facility in Chengdu, China.

Taiwan-based electronics manufacturing service (EMS) provider Foxconn Electronics (Hon Hai Precision Industry) is reportedly facing a shortage of both labor and materials at its plants in Chengdu, China, which is likely to affect shipments of iPad 2 and iPhone 4 orders in the second quarter, according to sources from upstream component makers.

They claim Apple estimates quarterly sales for the iPhone 4 at around 20-22 million units and iPad 2 in the 10 million unit range. Foxconn prepared these facilities to accommodate roughly 40 million iPad 2 units annually, and although the China plant in question doesn't push out as much iPad 2 volume as their Shenzen plant, the impact could still be measurable if consumers find it difficult to pick up the tablet as demand grows.

This also goes against comments made by Apple COO Tim Cook during their quarterly earnings call where he indicated Apple felt confident with their iPad 2 supply plans, and that they should subsequently have an easier time meeting demand going forward.

We're hoping this rumor is off-base but your guess is as good as ours. Let us know what you think in the comments!

[Digitimes]

During the Q1 2011 financial results call, while stating 16.24 million iPhones were sold, Apple CFO Peter Oppenheimer once again said they could have sold more iPhones if they'd been able to produce them. Having increased production from 14 million to 16 million, they're still "boldly" investing in ramping things up further.

With the Verizon iPhone now announced, Cook added that Apple is working hard to get them into the hands of everyone who wants them.

Anyone care to guess what the Verizon numbers are going to do to overall iPhone sales?

Once again it looks like Apple might get some heat for something that it doesn't control -- namely the supply of iPad screens which LG now warns are constrained to the point international roll-outs might need to be delayed.

Given how much Apple does on their own, we sometimes forget they're still at the mercy of other companies -- even competing companies -- when it comes to components, like LG for screens, and Samsung for chips.

Apple delayed their second wave of iPad launches by a month last May, and has just entered several more countries this weekend, but high demand and low screen supply seems to be something they can't get passed. Even if they kick things into high gear, LG CEO Kwon Young-Soo warns, they won't be able to meet demand until 2011.

[Reuters via Engadget, thanks Doug!]

Once again it seems AT&T's lock down of the iPhone will be paying off in droves. It's only been a few days yet AT&T has managed to sell each and every single iPhone 3G S that it had stored away for pre-orders. Any unlucky customer who places an order with AT&T after today will sadly have to wait an extra one to two weeks to get their hands on their new iPhone 3G S.

Now keep in mind, if did get your pre-order in on time with AT&T, you will still have to show up at 7:00 am on June 19th to claim your prize. After the pre-orders have been picked up, the remaining stock will go to all of the walk-in customers. Regarding Apple and their supply, there has been no word yet so you can try your luck ordering straight from Apple.

So to all of you who took the pre-order plunge, which route did you travel? AT&T or Apple?

[Thanks to everyone who sent this tip in! Via BGR]

We are all aware that WWDC is only one week away. If history is any indication of what is to come, that means we should be introduced to the next-generation of Apple's iPhone and if we follow previous patterns, we should start seeing the iPhone 3G supply starting to run thin on all levels.

AppleInsider is now reporting that Best Buy headquarters has sent out a memo to all of it's stores saying to expect little to nothing in terms of iPhone 3G supply for the next few weeks. Last year we saw similar shortages but they occurred a few months prior to WWDC, April to be exact.

So, after all the previous rumors covering Austria to Australia, Canada and back what do you readers think? Ready to pick yourself up a new iPhone? Sound off in the comments!