View this article at: http://www.macnn.com/articles/13/05/08/biggest.quarterly.drop.for.supplier.since.2011/
Wednesday, May 08, 2013 3:20pm
Pegatron blames Q2 revenue decline on lower iPad mini demand
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.