“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.”
Culpan 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.”
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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
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