Pegatron Forecasts Big Drop in Revenue as Demand for iPad Mini Falls

Pegatron is forecasting a big drop in revenue as iPad mini demand falls, according to a Bloomberg report.

Second-quarter revenue for the business, which also makes Microsoft Corp. (MSFT)’s Surface tablet, will drop 25 percent to 30 percent from the previous three months, Pegatron said today. That’s the most since a 37 percent decline in the fourth quarter of 2011.

A decline in revenue from the iPad Mini “is more on demand, while price has been stable,” Pegatron Chief Executive Officer Jason Cheng said. “Not just tablets, also e-books and games consoles, almost every item is moving in a negative direction.”


Over half of Pegatron's consumer electronics revenue is from the iPad mini and the iPhone 4S accounts for most of its sales in the communications division.

“This is a bigger drop than we’d expected,” said Vincent Chen of Yuanta Financial Holding Co. “We’re seeing strong indications from the supply chain that demand for iPad Mini will now fall 20 percent to 30 percent from the first quarter, instead of an earlier 15 percent estimate.”

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