Tablet manufacturers cut back on orders to the supply chain as shipments are expected to slip

Tablet manufacturers cut back on orders to the supply chain as shipments are expected to slip
Strong sales of larger-screened handsets like phablets are still expected to eat into tablet manufacturers' production numbers this year. Tablet vendors have been conservative in their forecasts and companies like Samsung have been reducing their orders with the supply chain. After all, if you're going to produce fewer tablets, you don't need as many parts as you originally thought. Thus, the supply chain is also expecting orders to fall below the amount seen last year.

Last month, well-connected Apple analyst Ming-Chi Kuo said that he expects shipments of the Apple iPad to decline 30% this year. Apple introduced it's first phablet last year, the 5.5-inch Apple iPhone 6 Plus. It also raised the screen size of its flagship model, the Apple iPhone 6, to 4.7-inches from the 4-inch glass used on the Apple iPhone 5s and Apple iPhone 5c.

China's supply chain is considered to be more prepared to handle the decline in tablet shipments than its Taiwan based counterparts. The former has lowered its prices to attract manufacturers looking to cut back on costs. Based on one published report, tablet shipments will decline 11.8% this year to 221.4 million units. This same analysis shows tablet shipments continuing to decline until the bottom is hit in 2016.

source: DigiTimes

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6 Comments

1. CreeDiddy

Posts: 2255; Member since: Nov 04, 2011

This is an indicator that Apple should discontinue the iPad Mini in place of the iPhone Plus model in the 6.5" range. This will help with phablet sales but also help their tablet sales as well.

2. LebronJamesFanboy

Posts: 671; Member since: Mar 23, 2013

Lol do you have any clue how large a 6.5" iPhone would be with the huge bezels the iPhone 6 already has? As it is, many people feel the 5.5 is too large.

3. Scottl878

Posts: 6; Member since: Jan 29, 2015

Why do phones get bigger every year seriously 5inches is anough

4. Doakie

Posts: 2478; Member since: May 06, 2009

5 inches is never enough. No matter how many times she tells you, she's just trying to make you feel better. :-D

5. Donbenie

Posts: 260; Member since: Aug 04, 2013

Lol..

6. 7thspaceman

Posts: 1597; Member since: Feb 14, 2011

there is a market for a 7 or 8 inch tablet with limited phone capabilities. Most people wont buy them but enough people will to make them worth selling.

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