Pegatron, a company based in Taiwan that manufactures devices for Apple, is predicting a big loss this quarter, its largest in six quarters. The company, which also manufactures many other devices for other companies, is expecting a 25%-30% drop in revenue this quarter compared to last.
The company currently earns more than half of its revenue from the iPad mini, which performed well recently due to its new launch and new spot in the Apple family.
According to Vincent Chen, who rates companies for the 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.” These estimates are both bad news for Pegatron, which will lose revenue, as well as Apple, which will lose sales numbers and income due to a low iPad mini demand.
Do you still think the iPad mini is a good tablet? Do you prefer it over the full sized Retina iPad, or do you like the larger and more high end iPad?