Pegatron forecasts revenue drop on falling iPad mini orders

“Pegatron Corp., the Taipei-based maker of Apple Inc. devices, forecast its biggest drop in consumer- electronics revenue in six quarters as iPad Mini demand falls,” Tim Culpan reports for Bloomberg News.

“Second-quarter revenue for the business, which also makes Microsoft Corp.’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,” Culpan reports. “Pegatron, spun off from Asustek Computer Inc. in 2010, joins Hon Hai Precision Industry Co. in facing a decline in orders from its largest customer.”

PegatronCulpan reports, “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.’ The iPad Mini accounts for more than half of Pegatron’s consumer-electronics revenue, and the iPhone 4S contributes a majority of sales in the communications division, Cheng said.”

“Hon Hai, the world’s largest maker of electronics products including the iPhone 5 and iPad, last month reported a 19 percent drop in first-quarter revenue, the most in at last 13 years,” Culpan reports. “The company is due to report first-quarter net income by May 15.”

Read more in the full article here.

MacDailyNews Take:

I would suggest it’s good to question the accuracy of any kind of rumor about build plans and also stress that even if a particular data point were factual it would be impossible to accurately interpret the data point as to what it meant for our overall business because the supply chain is very complex and we obviously have multiple sources for things, yields might vary, supply performance can vary. The beginning inventory positions can vary, I mean there is just an inordinate long list of things that would make any single data point not a great proxy for what’s going on.Apple CEO Tim Cook, Q113 conference call with analysts, January 23, 2013

Related articles:
NPD: iPad mini with Retina display coming this fall – May 7, 2013
Analyst: Apple to release iPad mini with Retina display models in Q3 and early 2014 – May 6, 2013
Analyst: Apple prepping lower-priced $199-$249 iPad mini models – April 29, 2013
Analyst: No iPad mini with Retina display until October due to screen yield issues – April 29, 2013
iPad mini shipments expected to drop 20-30% in Q213 as consumers wait for next-gen model, sources say – April 17, 2013

30 Comments

  1. Would be helpful to get the drop compared to the same quarter last year, instead on comparing to the last quarter, so we don’t have to untangle the seasonal variations (like comparing the Christmas quarter with any other quarter).

  2. I suspect MSFT cancelled all Surface orders, because of slow sales. iPad mini slowed after inventory build. No sign that Pegatron will get the new iPad mini, especially if company was explicit about the customer driving the drop. No inital reaction PM. Apple will trade ex dvd tomorrow, so initial drop will be about $3

  3. None of u idiots will believe iPad Mini demand is nowhere near what u thought it was. I called it a stillborn product: No Retina? No way.

    Can’t wait to see the next quarter results.

    1. The mini is selling very well thank you. Just as I always said it would. The mini has been out for a while so sales are bound to drop some. Summer is coming and that will further slow sales. Sales are not slowing due to the refresh coming. Most consumers are not savvy enough to know that a new mini is coming and possibly with a retina display. The new mini should be out just after school starts and ready for the holiday season. And it will sell like hotcakes. Again. The reason graphs and charts were designed was to follow the ups and downs of companies and sales. The iPad mini has sold very well but it can’t continue up forever. Everything slows a bit. It’s just taking a breather now. Same goes for AAPL stock. It couldn’t go up forever either. It has taken a breather, albeit a long one, and is ready to come back up a bit. They’ll both be fine.

      1. @GM
        Trying to respond with FACTS to sfgh? Noble effort. Not going to work. He’s just kind of psych-case loser who comes here to read about products he doesn’t like and call people names.

        1. Seamus:

          You delusional twat. There is not one fact stated in GM’s post, neither yours. It’s all conjecture and subjective opinion.

          Post the data. Show the numbers of iPad Minis sold last quarter, and the quarter before that. Show the number of iPad Minis sold to date.

          Post the data, or else shut up.

          1. ” It’s all conjecture and subjective opinion.”

            And yours is Not? just how is yours “facts?”

            As an aside, funny how Dell finally got caught being a one pony trick for years and putting all their eggs into one basket. Apple diversifies their product lines well and each are seasonal which is to be expected. One up, two down in sales, then two up and one down in sales. The trend overall keeps going up.

            People expected this from MS and Dell and others, but when Apple does this, all the attention is drawn to the seasonal “down” product line for manipulation.

            The whole purpose behind a “portfolio” investment and product line is this philosphy. People buy into it for everyone but the news spin makers who are looking for hit whoring news data to their sights . . . and of course to individuals who just look for a tidbit of negative news to slam a company.

            1. Mine is based on fact because I don’t say the Mini’s sold well. I have no data. I have little idea how it’s selling because Apple doesn’t say. Which leads me to believe it’s nothing to brag about.

  4. Phillip Dewitt at the Apple 2.0 blog has shown that this article is essentially false. He wrote the Pegatron CEO, who said that he was crudely misquoted.

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