Coretronic to cut 200 employees as demand for tablets such as the iPad falls

Coretronic, which produces LCD backlights for Apple's iPad, will layoff 200 employees in China and Taiwan amid falling demand for the company's backlight modules, reports Apple Daily, a Hong Kong-based news site. The company has confirmed the report, notes, a global investment newswire.

Coretronic's net sales dropped 19.5% year-over-year to TWD 16.9 billion (about US$522 million) and net income dropped 61.8% year-over-year to TWD 326 million in the second quarter of 2015. The company cut 127 employees working at two factories in Taiwan and more than 60 employees at its factory in Nanjing, China, which shut down last week. Coretronic still has six factories in China.

Global tablet sales have continued to fall in recent years with the advent of large-sized smartphones and touchscreen computers, which are seen as alternatives to tablets. Tablet shipments are expected to decline 8% this year, according to theIDC research group.

Coretronic Corpo. was established in the Hsinchu Science Park, Taiwan, on June 30, 1992. Since the very beginning, it has positioned itself as a display solution provider.