Friday, June 10, 2011

China makers to roll out 2.2-2.3 million tablet PCs in 2011

Production of white-box tablet PCs in China is expected to grow 20-30% on year to 2.2-2.3 million units in 2011, with 7-inch models accounting for 60% of output followed by 8-inch models at 15% and 9.7-inch ones at 10%, according to sources citing figures from research firms.

Due to consumers in China being more sensitive to price and favoring products with high performance/price ratio, 7-inch models are receiving the most attention from China consumers.

Because most of China's white-box players have already have experience related operating strategy, sales model, and product R&D, they were able to quickly cut into the white-box markets for tablet PCs and netbooks. With their products' added-value and lower prices, these white-box players expect their advantages to help them attract consumers.

In addition to standard web browsing, most of the white-box tablet PC players are adding functions such as camera modules, e-book reading and GPS into their machines to increase the performance/price ratio to compete against first-tier vendors.

However, although most of the white-box vendors are attracting consumers with low prices, labor and material costs have been rising, and the increasing exchange rate of the Chinese Yuan is also damaging their gross margin. Players are now aggressively looking to sell their products to markets outside of China to boost their overall profitability.

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