Low sales of Apple’s iPad have forced the company to close one of its Chinese factories.
Coretronic Corp, a Taiwan-based company that manufactures liquid crystal display modules for the US-based tech giant, is halting production and liquidating assets at its Nanjing, Jiangsu factory. The ten year-old plant employs 1,500 workers and is capable of churning out one million units a month during peak production.
One of the top three electronic panel manufacturers in the world, Coretronic operates six factories in China. A human resources employee confirmed to China Daily that the Jiangsu plant is in fact closing but declined to confirm whether the company will lay off its workers or simply relocate them to other plants.
The factory closing comes at a time iPad sales are slumping. iPad sales have declined for the sixth straight quarter. Apple is now struggling to sell 10 million units per quarter, a four-year low for the tech giant.
To stimulate interest in the tablet market, Apple released the new iPad Pro this September, a tablet with a 12.9 inch screen featuring a smart keyboard and a stylus designed to act more like a desktop computer.