Pegatron Forecasts Revenue Dip As iPad Mini Demand Drops

Apple provides Pegatron quite a lot of business. The latter is tasked with manufacturing components that are part of iPhone 4S and the iPad mini. It is also rumored to be manufacturing components for the next generation iPhone. Foxconn, Apple’s biggest manufacturing partner, has recently been shifting its strategy so as to end its reliance on Apple’s business. Foxconn is now looking sell products that it creates, designs and manufacturers itself. Decreasing demand of Apple products has certainly got its manufacturing partners concerned, and now Pegatron predicts that its consumer electronics revenue will drop some 25 to 30 percent. iPad mini’s apparently declining demand is a major reason for this revenue dip, considering that this device counts for almost half of Pegatron’s consumer electronics revenue, and iPhone 4S accounts for a substantial part of its .

Pegatron CEO Jason Chen says that revenue decline caused from the iPad mini is “more on demand, while price has been stable,” adding that “Not just tablets, also e-books and games consoles, almost every item is moving in a negative direction.” It is being estimated that iPad mini demand will fall from 20% to 30% in this quarter, as opposed to the previous one.

Adnan Farooqui
Categories: Apple
Tags: iPad mini, iPhone 4S, next generation iphone, pegatron