Pegatron sees softening iPad mini orders

iPad mini (three-up, front, back, profile, black)

In another sign of consumers postponing purchasing iPad minis in anticipation of a second-generation model, said to sport Apple’s high-resolution Retina display, contract manufacturer Pegatron has cautioned investors Wednesday to brace themselves for as much as a 30 percent revenue decline when it reports second-quarter earnings, the most since a 37 percent decline in the fourth quarter of 2011.

Although Pegatron assembles Apples’ iPhone 4S and iPad mini, the Taiwanese corporation also acts as a contract manufacturer for consumer electronics from other makers. But as Apple is one of its principal clients – and given Apple’s high-volume needs – Pegatron attributed the decline to shrinking iPad mini orders…

According to CEO Jason Cheng, the iPad mini accounts for more than half of Pegatron’s consumer-electronics revenue. Additionally, the iPhone 4S contributes a majority of sales in the communications division.

According to Bloomberg, Chen blamed the iPad mini revenue decline “more on demand” as “price has been stable.”

Notably, Apple’s own guidance for the second quarter includes a 20 percent revenue drop versus the first quarter, which is about the same decline that Pegatron is now observing so no surprises here.

Another contract manufacturer, Foxconn, also faced a decline in Apple orders and consequentially reported nineteen percent decline in first-quarter revenue, the most in at last thirteen years.

But it’s not just the iPad mini.

Pegatron makes Surface tablets for Microsoft, which I’m sure everyone knows isn’t selling well, to put it mildly.

“Not just tablets, also e-books and games consoles, almost every item is moving in a negative direction,” the CEO told the news organization.

Can’t wait to check out WSJ’s spin to this.

According to NPD DisplaySearch, Retina screens for the second-generation iPad mini will enter mass-production in June. The firm is actually expecting two iPad mini models, one in the second half of 2012 and another in the first quarter of 2014 with a faster processor.