Upstream sources in the iPad mini supply chain expect a 20-30% decline in shipments for the device during the second quarter of 2013 due to lacking demand in the market.

The lacking demand stems from consumers waiting for the release of the next generation iPad mini, said the sources. Apple has also recently adjusted its reserves for the current iPad mini, which are estimated to be between 10-12 million during the quarter, down from approximately 15 million in the first quarter of the year.

Additionally, panel makers are expected to be affected from the adjustment. LG Display, which is the main supplier of iPad and iPad mini panels, expects that combined panel shipments for the two devices will reach 3.5 million units in April 2013, down from five million units in the previous month. The combined shipments are expected to further drop to three million units in May and June of the year, added the sources.

Apple still hopes to ship 55 million iPad minis in 2013, the sources said.