Abstract

7-inch Tablets Moving Toward High Quality, Low-Cost Trends; Chinese White-box Tablets Face Bumpy Road

Based on new products launched by individual branded vendors in 2012, it is observed that those with an abundance of content services such as Amazon and Google have tendency to roll out products featuring high specs and low-price, with an aim to increase opportunity by growing consumers' familiarity with non-Apple products. With content and service suppliers launching their respective low-priced, high-specs tablets, sales of branded vendors in the value-line segment are affected directly. Therefore, some branded vendors have begun seeking new battlefield for their low-priced tablets in regions where Amazon and Google are yet to set foot in. China and emerging markets have been the first priority. Branded vendors have been providing tablets priced at US$199 or even lower than US$199, which has an impact on Chinese white-box market. With less than US$100 price difference, consumers are not more interested in branded tablets with warranty period provided. For Chinese white-box tablet vendors, it seems that the low-price strategy cannot help them make significant differences. As the number of key component suppliers increases, prices of branded tablets have fallen rather fast. It is anticipated that since Chinese white-box tablets are losing their price competitive, the future development of Chinese white-box tablet market is likely to be restricted.

Windows RT/8 Key Factors to Redefine Application Processor Vendors' Industry Landscape

Currently, major tablet application processor vendors are Apple, TI, and Nvidia. Should the white-box tablet application processor be included, Apple will continue to dominate the market in 2012 while TI, Rockchip, Allwinner and Nvidia competing for the second place. With the Windows RT/8 operating system due to hit the market in the fourth quarter of 2012, tablets powered by ARM and X86 architecture processors are expected to be available soon. Although the first round of Windows RT certified application processor suppliers only include Nvidia, Qualcomm, and TI, as Microsoft is going to actively promote its Windows OS tablets, the company will be likely to increase an additional list of processor suppliers to have their products certified for Windows RT. Aside from Windows RT, Intel released a new platform, dubbed Clover Trail, for Windows 8 tablets, in an attempt to tap the growing market demand for such devices. In recent years, Intel will shift its product development focus to lower power consumption and elevate IC integration. Whether X86 architecture processors are able to leverage their strength in desktop applications on tablets to trigger consumers' purchase demand for x86 tablets should merit closer observation as it will likely affect the landscape of Intel in the mobile device market.

Appendix

Glossary of Terms

List of Companies