Pegatron, a contract manufacturer for Apple that makes the iPad mini and the iPhone 4S, among other products, said today that its second quarter consumer electronics revenue will drop 25 to 30 percent from the previous quarter, reports Bloomberg.
The company says there is a decline in revenue from iPad mini production is "more on demand, while price has been stable", but CEO Jason Cheng also noted that "almost every item is moving in a negative direction" for the quarter. "Not just tablets, also e-books and games consoles".
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.
"This is a bigger drop than we’d expected," said Vincent Chen, who rates the company buy at Yuanta Financial Holding Co. in Taipei. "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."
In its quarterly results report in April, Apple issued guidance for expected revenue for the June quarter of $33.5-35.5 billion, a drop in revenue of some 20 percent from the prior quarter.
Reports have indicated that mass production of the display for a Retina iPad mini should begin in June or July, for a planned release well into the third calendar quarter of 2013.