Affordable tablets to force out Chinese white-box manufacturers in 2013

Affordable tablets to force out Chinese white-box manufacturers in 2013
You might have noticed that from a $500 affair, tablets are edging close to $99 with affordable models from Acer and Asus expected to come around that price range early next year. And with the Nexus 7 for $199 and the even more affordable Amazon Kindle Fire, the market has definitely changed.

This change will have one interesting effect - it will force out white-box manufacturers (mostly from China), that used to flood the market with devices earlier on. A third of white box device makers are likely to exit the market in the first half of 2013 as margins get thinner and the tablet market matures.

With prices on white box devices in the range of $59 to $199, there is already plenty of competition between smaller manufacturers, but when the big companies enter those prices it will just become unbearable for some.

Expectations are that Apple will be the only company that will be capable of retaining its high-margin while others push the market down. Which after all is great for the consumer.

source: Digitimes

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13 Comments

1. ajac09

Posts: 1482; Member since: Sep 30, 2009

The way there smart phones are going I wouldn't be surprised in 2013 if the white box Chinese tablets become just as good as the name branded ones. We are already seeing signs of this. Tons of android tablets with IPS display equivalent to ipads retina are starting to come out with similar and sometimes better specs. No they are not dead. They are evolving.

2. gmacattacks

Posts: 24; Member since: Sep 07, 2012

I agree. Chinese tablets/phones are getting better and better and are being made with better materials and sold at a fraction of the cost.

5. MeoCao unregistered

If we look into the inside of those "white box" tablets/phones we can see very bad quality all around, the wires and PCB are very bad looking, most connectors are replaced by sodered wires... The Chinese can make a product at almost any price point. You place an order and they would ask you: "what price do you want?".

6. ajac09

Posts: 1482; Member since: Sep 30, 2009

most people are not going to tear them open and check on inside build quality.

7. stychill unregistered

No they won't though the person they ask to repair them will

3. MeoCao unregistered

Not so easy, the Chinese are very protective of their market and low priced imports are met with huge red tape and/or tariffs. The case at hand is N7, Google can't sell the tablet in Chinese market.

4. ogy_dogy

Posts: 453; Member since: Jun 29, 2012

Take for example the nexus 7, while it might be 199 in the us, here its closer to 300€, and i can buy a cheaper tablet thats just as good for half the money. So while whitebox tabs migh die out in the us europe is another story...

10. rusticguy

Posts: 2828; Member since: Aug 11, 2012

So also India. Whitebox tabs/phones will never die. Problem is writers presume US is the start and end of world :)

12. ogy_dogy

Posts: 453; Member since: Jun 29, 2012

Tis sad, but true...

8. stychill unregistered

The N7 is always on the cutting edge of android, aren't these tablets stuck on whatever version they were shipped with? that's fine for some people but not for me.

11. ogy_dogy

Posts: 453; Member since: Jun 29, 2012

You would be surprised how unknown tablet manufacturers quickly update their devices. yes nexus devices will always get the update first, but for example my old prestigio (??) tablet got updated from gb to ics in 3 months after release, and yeat a tablet like the samsung galaxy tab 1 will never even get it, and my current prestigio tab got 4.1 out of the box a month ago, how many samsung phones/tablets are running 4.1? let alone 4.2...

9. rusticguy

Posts: 2828; Member since: Aug 11, 2012

Apple will retain high margin at expense of lost market share. Only time will tell if Apple model of criminally high profit margins can sustain for long in this segment.

13. ogy_dogy

Posts: 453; Member since: Jun 29, 2012

well judging by their mac era they can, they never had much of the pc market but never went under either. dk how tho...

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