White-Box Tablet Manufacturers Aggressively Price Cutting To Stay Competitive

Digitimes reports that Chinese-based “white-box” tablet vendors are really stepping up their game with price cutting in order to stay competitive. With Amazon, Google, Samsung and Acer all pushing aggressively in the 7 inch form factor market Chinese white-box vendors are being forced to continually low prices to keep sales high. This aggressive price cutting is good for the overall tablet market and is apparently stimulating overall demand:

“The sources pointed out that entry-level ARM-based processor solutions from China-based chipmakers and help from China’s supply chain are enabling the white-box vendors’ competition in the tablet market through price cuts. Low-price devices are also stimulating overall demand in the tablet market.”

In Taiwan Acer and ASUS are selling dual core 7 inch tablets for as low as NT$5000 (US $169), MSI as low as as NT$4000 (US $135) and consequently white-box manufacturers are pricing at a very low NT$2000 ($98). Of course this is great news for Western consumers because if you want to get your hands on some cheap functional Android tablets then it is easily done.

“In the US, white-box players are more aggressive in pricing. At Walmart, a major channel retailer in the country, white-box vendor Xelio’s 7-inch model is priced at US$49; an 8-inch Nextbook, featuring Android 4.1, 8GB storage, 1.5GHz dual-core ARM A9 processor, is priced at US$99; and a Double Power 9-inch device, coming with a keyboard and a protective cover, sells for US$89….IDC’s figures also have showed that the non-top-5 brand vendors’ combined market share rose from 26% in the second quarter of 2012 to about 39% in the second quarter of 2013.”

Image courtesy of FocalPrice.com