The iPad mini, Apple Inc.’s purported reply to smaller but well-known tablets from opponents like Amazon and Google, may be facing production setbacks in Asia, a tech website reported. DigiTimes cited sources in Apple’s supply chain in Taiwan who suggested at low yield rates at chassis manufacturers. It said the sources pointed out at least 3 companies are producing the chassis.
Quoting its sources, DigiTimes reported the iPad mini will come in native- and black-colored aluminum shape, which are more sensitive to scratching. The sources added the anodized finish operation on the black cases is more crucial, “which often results in lower yield rates.” It said case manufacturers Foxconn Electronics, Catcher Technology and Ri-Teng Computer Accessory are responsible for manufacturing of the iPad mini chassis. R-Teng is an associate firm of Pegatron.
DigiTimes said Catcher rejected to opinion on market reports, but said its capacity utilization rates as well as yield rates for different items “all meet its product roadmap.” Meanwhile, DigiTimes cited a report showing Barclays Capital has recommended traders in Taiwan take up shares of Foxconn and Pegatron, the 2 suppliers for the iPad mini. It said Barclays also indicated the purchasing of other iPad mini-connected stocks, including TPK Holdings and Largan Precision.
“Foxconn, the sole manufacturer for the earlier iPad lineup, apparently has landed over 50 % of the 1st wave of iPad mini orders, while Pegatron will handle the rest of the sales, disclosed the sources,” DigiTimes reported.