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Pegatron blames Q2 revenue decline on lower iPad mini demand

updated 03:20 pm EDT, Wed May 8, 2013

Biggest quarterly drop for supplier since 2011

Asian supplier Pegatron is blaming an anticipated second-quarter revenue drop on falling iPad mini demand, Bloomberg reports. The company is predicting a 25 to 30 percent sequential dip in revenue, the worst the company has seen since a 37 percent slide in the fourth quarter of 2011. CEO Jason Cheng elaborates that the Mini represents over half of Pegatron's consumer electronics revenue, although devices like e-book readers, game consoles, and other tablets have seen declines as well.

Consumer electronics represented 36 percent of Pegatron's Q1 revenue. That business is, importantly, separate from the company's computing division, which manufactures notebook and desktop systems. It accounted for 40 percent of Q1 revenue, and Pegatron expects it to see a 5 to 10 percent increase in shipments by the end of Q2. The company's remaining business is in communications hardware, which is forecast to see revenues remain flat.

The Mini has so far proven successful for Apple, but an initial rush of interest may be subsiding. Some shoppers have also been anticipating a second-generation model in the near future, and may be holding off on buying the current hardware. More recent predictions have called for a September refresh.




by MacNN Staff

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  1. gprovida

    Junior Member

    Joined: 02-14-06

    As Cook said be careful drawing conclusions. All you can really say is Apple is buying less of this companies product but another company may be dong fine or Apple has a large stock or .... However, I suspect blaming iPad Mini demand may not be seen as the kind of leaps of imagination Apple wants its suppliers making so Pegatron may see a even bigger drop as Apple moves to a more discrete supplier.

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