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iPad supply chain sees doom ahead

by on28 February 2017

Not sure if the new iPad Pro will save their bacon

Those responsible for inflicting the iPad on the world are experiencing a rather large slice of karma, thanks mostly to their dependence on the fruity tax-dodging cargo cult.

According to Digitimes, the first-quarter 2017 results of iPad supply chain manufacturers are not that good. Touch panel makers TPK Holding and General Interface Solution (GIS), are hanging in the balance and they are really hoping that Apple is going release its new iPad Pro lineup soon.

It had been expected that Apple is planning three new tablets for 2017, an entry-level 9.7-inch iPad, a 10.5-inch iPad, and an upgraded 12.9-inch iPad Pro.

Vendors need at least one of the two large-size tablets, 10.5-inch iPad or the 12.9-inch iPad Pro, to be released in the first quarter of 2017 along with the entry-level 9.7-inch iPad, otherwise they might be facing a cash crisis.

However, Apple, with its usual caring and sharing attitude to suppliers and consumers alike, seems to be planning to release the two large-size models in May-June, which will mean that first quarter sales of supply chain makers are going to be pants.

TPK is expected to see its revenues drop within a range of 10 percent in the first quarter of 2017. But the company is still likely to post growth for the first half of the year thanks to follow-up orders for the new iPad Pro lineup, commented the sources.

GIS is expected to see its revenue decline over 35 percent in the first quarter from the $963.28 million of a quarter earlier.

The hope is that orders from Apple as well as non-Apple handset, tablet and notebook clients will help GIS boost sales for the second quarter and eventually for the first half of the year.

But there are indications that iPad sales will continue to fall. Optimistic analysts say that shipments of iPad devices are expected to reach 40 million units in 2017, down slightly from a year earlier. Even if these figures are correct, then a few suppliers will be regretting their dependence on Jobs’ Mob.

Last modified on 28 February 2017
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