Taipei, Tuesday, September 23, 2014 03:24 (GMT+8)
mostly cloudy
Taipei
27°C
Digitimes Research: White-box tablet shipments to reach 25 million in 3Q13
Anthony Chen, DIGITIMES Research, Taipei [Monday 11 November 2013]

China white-box tablet shipments reached about 25 million units in the third quarter of 2013, up 56.3% sequentially and 40.4% on year thanks to strong overseas shipments, which accounted for 80% of the total volume. Among white-box tablet shipments, 7-inch models accounted for the largest share, while 8-inch models, which were originally expected to become new star products, were unable to do so because of high costs from the bezel design and limited supply of 8-inch panels.

Although white-box tablets are expected to see extraordinary growth in 2013, they are also expected to face more obstacles and challenges in the future. First, they will see strong price competition from large brand vendors, which will offer Android-based products at price levels similar to those of white-box models. Second, the tablet market will gradually reach saturation and should no longer see demand as strong as before.

Third, white-box tablet costs have already hit the bottom margin, causing related assembly service providers and component suppliers to see limited profits. Several unhealthy players were already been eliminated from the market at the end of the second quarter, while the remaining players will need to rely on pumping up their shipments to support their profitability. However, such a strategy is unlikely to sustain for long, Digitimes Research noted.

Digitimes Research also found that white-box tablets in Europe or North America are mostly used as gifts in product promotions or bundling deals and therefore specifications are not as high as those of regular tablets. As for emerging markets such as Eastern Europe, Southeast Asia and Latin America, most consumers are buying white-box tablets with a single-core processor, because of limited purchasing power.

As for application processors (APs), 70% of white-box tablets with phone functions adopted solutions from MediaTek in the third quarter, replacing the solutions from China-based Allwinner, the original favorite. Digitimes Research estimates that the proportion of white-box Wi-Fi-only tablets using MediaTek's solution will also increase dramatically starting the fourth quarter, further impacting China-based Allwinner and Rockchip's AP shipments. In addition to low prices, China-based AP suppliers will also need to consider how to create additional value for their APs to survive the competition.

Realtime news
  • Sony Mobile to focus on high-end smartphones, will decrease ODM orders, say Taiwan makers

    Mobile + telecom | 4h 41min ago

  • Taiwan market: Meizu likely to launch smartphone MX4

    Mobile + telecom | 4h 44min ago

  • Tablet panel pricing for 7-inch units remains flat in mid-September

    Displays | 4h 45min ago

  • Digitimes Research: Japan TV vendors see their proportion of 50-inch and above size Ultra HD TV sales drop

    Displays | 4h 49min ago

  • Great Wall plans to start fund raising for solar investments, says report

    Before Going to Press | 4h 58min ago

  • Argument between China vendors shows weakening of China smartphone industry, says report

    Before Going to Press | 5h 53min ago

  • Tablet panel pricing for 7-inch units remains flat in mid-September

    Before Going to Press | 6h 17min ago

  • Digitimes Research: TV vendors see their proportion of 50-inch and above size Ultra HD TV sales drop

    Before Going to Press | 6h 18min ago

  • Digitimes Research: Taiwan makers continue to focus on production of a-Si panels for use in the high-end smartphone panel segment

    Before Going to Press | 6h 18min ago

  • Xian SinoChip reportedly uses Powerchip foundry services

    Before Going to Press | 6h 18min ago

  • LCD monitor pricing increases in September

    Before Going to Press | 6h 22min ago

  • Notebook demand weakening in 2H14 partly due to Apple new devices

    Before Going to Press | 6h 23min ago

  • TSMC Solar president reportedly to resign

    Before Going to Press | 6h 23min ago

  • Taiwan market: Microsoft to launch Xbox One

    Before Going to Press | 6h 25min ago

  • Digitimes Research: Alibaba faced with operational difficulties

    Before Going to Press | 6h 26min ago

  • Digitimes Research: Apple uses iPad, iPhone models extend music business model started by iPod

    Before Going to Press | 6h 30min ago

  • LG to announce new smartphone with in-house AP, says report

    Before Going to Press | 6h 32min ago

Pause
 | 
View more
MSI X99S GAMING 9 AC
DIGITIMES Marketing Services
DIGITIMES Translation Services
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.