Strong Demand for Apple's (AAPL) iPad Mini Propels Profits for Pegatron

December 18, 2012 6:40 AM EST
Another good sign for Apple, Inc. (Nasdaq: AAPL).

According to Digitimes on Tuesday morning, sales of Apple's iPad mini might actually be much more robust than expected. ODM Pegatron should see strong sales in the first-quarter of 2013 due to strong iPad mini orders. The iPad mini also added positive upside to Pegatron in the fourth quarter, boosting revs 64 percent over last year.

Upstream suppliers told Digitimes that Apple will gradually shift its ordering scheme. The majority of iPad orders -- roughly 60 percent to 70 percent -- and the minority of iPhone orders will be shifted to Pegatron over the next three years. Pegatron peer, Foxconn Electroncs, will see the opposite shift, getting more iPhone orders and fewer iPad orders.

Estimates have iPad mini shipments in the range of 8 million to 10 million units by the end of 2012. Given that the device, along with the iPad 4, were just released in multiple new markets like China, Digitimes believes demand will carry through the first-quarter of 2013.

The iPad mini first went on sale last October, with iPad mini and iPad 4 sales above 4 million units in early November. Shares of Apple are indicated for a higher open Tuesday.

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