Some Worry That Success of Apple Is Tied to Japan

 

"SAN FRANCISCO — Last week, shares of Apple did something they rarely do: they fell nearly 7 percent, in two days.

The unusually sharp drop, which was twice as large as the decline in technology shares over all, was driven in part by worries over the impact that the crisis in Japan would have on Apple’s ability to make its blockbuster products. It didn’t help that the iPad 2, the latest Apple gadget that everyone seems to want to get their hands on, appears to be in increasingly short supply, a situation Apple has found itself in before.

The two factors are unrelated, at least for now. Any problems affecting Apple’s supply chain in Japan will not affect finished products for weeks, analysts say. But some investors fear that Apple’s challenges in meeting demand for a product like the iPad 2 will simply get worse in the months to come as some critical components are delayed."