In the third quarter, $100M of the $380M was from the ipad -- production was already low, and we already knew it was dropping due to Apple inventory adjustments. Let's say that it drops by half, down to the minimum level of the contract, and stays at that level for the whole quarter (unlikely.) That's a loss of $50M revenue compared to the third quarter, or about 13% of revenue, and probably around 10% of revenue compared to the fourth quarter. Not a very remarkable amount, especially considering it's the seasonally weakest quarter of the year.
We already knew that during the last conference call they were in talks with customers (plural) for the production of a new product. IGZO ipad, IGZO ipad mini? iphone 5s? Any of those would far more than counter the small ipad loss that we already knew was coming. There's also a large amount of increased business coming from Sony/Japan Display, with their xperia tablet Z launching next week, and xperia Z and ZL smartphones launching early March. There's a good likelihood that Nam Tai is involved.