Apple product manufacturer Pegatron Electronics expects 25-30% lower sales in this quarter because of a decrease in demand for the iPad Mini.
Well this is something you don't see every day. Bloomberg is reporting that Pegatron Electronics, one of Apple's primary suppliers, is forecasting a significant drop in sales and the reasoning is apparently because the iPad Mini is seeing a decline in demand. Although the Taipei-based company manufactures products for other companies as well, such as the Microsoft Surface, Apple has always been their biggest client.
Revenue for their second quarter will drop 25% to 30% from the previous quarter. Pegatron's Chief Executive Officer Jason Cheng explains that this decline “is more on demand, while price has been stable,” and continues to say that this isn't just an Apple problem, but something more widespread. Cheng re-iterates “Not just tablets, also e-books and games consoles, almost every item is moving in a negative direction.”
The iPad Mini accounts for the majority of Pegatron's revenue and their reliance on this one product is proving to be problematic. Things are definitely not as stable as they might have hoped.
Of course none of this will stop the Apple from ramping up production for their iPad Mini with a retina display that is rumored to launch later this year.
Source: Pegatron Via: Bloomberg