iPad sales dipped below 10 million this quarter for the first time since 2011 — and the lack of demand for tablets is hurting Apple’s suppliers.
According to a new report, the Taiwan-based company Coretronic, which provides backlight units for Apple, has been forced to cut down its work force at three separate factories in Taiwan, while closing a subsidiary in Nanjing, China completely.
Photo: QZ
The company blames the lack of demand — specifically for the iPad mini 4 — on the fact that Apple hasn’t come up with enough modifications to make the devices “must have” products.
It’s a valuable lesson about the dangers of third-party suppliers tying themselves so closely to the fortunes of a giant like Apple. Yesterday’s monster earnings call shows that numbers are up in just about every aspect of Apple’s business, with the notable exception of iPads.
Apple CFO Luca Maestri yesterday acknowledged that the iPad has been cannibalized by some of Apple’s other products, most notably larger phones.
We guess you win some, you lose some as an Apple supplier. It’s not like Apple’s been a bad earner for those on the supply side though, is it?
Source: Digitimes
Luke Dormehl is a U.K.-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Apple Revolution and The Formula: How Algorithms Solve All Our Problems … and Create More, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme and other publications.
14 responses to “Apple’s suppliers are hurting over weak iPad demand”
Surface is iPad killer.
Surface is an awesome machine, but the iPad still has a place. Its thinner and lighter, has no fan, has built in broadband (if you want it) and is a great consumption device. Plus, there’s an advantage to running the same apps on your large screen device that you run on your phone.
But Apple is wasting time on nonsense like the iPad Pro. instead of making the regular iPad better.
I actually think that the iPad Pro does make a great consumer device, I am seriously considering getting one and will use it for watching TV and videos on in bed. I prop my existing iPad on a stand and it will take a iPad Pro just as easily, nice big screen and very portable.
The problem for me is price. If you want the best iPad Pro, with keyboard and pen, its like $1600, which is ridiculous. If they could bring that down to $1199, they would be closer to reality. The cheapest iPad Pro, with pen and keyboard, needs to be $599. And the pen should be included, like the Surface Pro does.
Personally, I think Apple is overestimating the iPad Pro’s value vs. dollars.
We do not have prices yet in my country, but you are right they do change the equation for everyone. Though for me is the keyboard and pen necessary? For me it would be a giant iPad.
Yes, Apple is not kind in applying exchange rates. The keyboard might probably not necessary, but the pen looks very appealing :)
The pencil does look appealing and I might still get the keyboard anyway, as you never know when you might need it.
The interesting thing about falling iPad sales is that I am still perfectly happy with my iPad 2 and so it is only when that breaks that I really need to get a new one. It is pretty much perfect to start with so no real need to upgrade.
Surface is a PC laptop killer per se so worry for HP, Dell, Lenovo etc.
Surface doesn’t have LTE. lol
Surface is a laptop with a keyboard that falls off.
of course does have LTE/
Surface pro 4 does not have lte….
Seriously? You’re reporting a Digitimes story as fact? Are you on drugs?
How many times has it been said .People change phones on a regular basis.iPads /tablets seem to have a much longer shelf life. People worry over low iPad sales figures. Do we know how many Android tablets are being sold. We should look at the % share of the market rather than pure numbers.
I don’t understand how ~10 million iPads sold is considered “weak” sales. 10 million tablets at $499+ a piece is far from weak. People don’t upgrade their tablet as fast as they update their phone. It’s just that simple.