The recession may cause sales of tablet PCs to fall below expectations, and at least one supplier, Samsung, is cutting planned production by 50 percent, reports Bloomberg citing analyst Ashok Kumar of Rodman & Renshaw.
Kumar said Samsung sliced production in half after poor initial sales, citing discussions with Samsung suppliers.
Apple may also have trouble reaching some analysts’ forecasts for sales of 6 million iPads in Q4. Instead, he believes Apple may sell closer to 5 million. (Apple sold 4.19 million iPads in Q3).
Tablets are considered a desirable gift but they are not yet must-have products and are therefore vulnerable at a time of recession, said the analyst.
The Samsung Tab has only been available since the weekend and a Samsung spokesman said it’s too early to forecast sales, said Bloomberg. “We do expect this device to be a very hot holiday device,” said the spokeperson.
Source: Bloomberg
