Taipei, Wednesday, August 24, 2016 05:43 (GMT+8)
scattered thunderstorms
Taipei
32°C
China white-box makers add extra value to tablets as cost reduction is no longer possible
Anthony Chen, DIGITIMES Research, Taipei [Thursday 16 January 2014]

China white-box players have not been able to lower their Wi-Fi-based tablets' prices since the third quarter of 2013 because there is no room for further reductions in their BOM costs.

The average BOM cost for a white-box tablet - most of which adopted a dual-core processors - stood at about US$25 as of the fourth quarter of 2013. Dual-core processor pricing could not drop any furrther, as their average prices came to about US$4, only less than US$1 higher than that of a single-core one.

Memory and 7-inch TN LCD panels are the two key components that account for major shares of white-box tablet BOM costs. However, most panel suppliers have been only willing to upgrade specifications instead of dropping their quotes, and therefore, white-box players have been left with upgrading their devices with better panels without an option of reducing the panel cost.

While cost reduction is no longer a feasible way to attract consumers, many white-box players have turned to push tablets with phone functions to increase their devices' functionalities and value. The devices also provide higher gross margins for vendors.

Digitimes Research estimates that currently, 80% of white-box tablets are available in countries other than China, because white-box tablets with phone functions have seen rising demand in Russia and other markets in Eastern Europe and Southeast Asia since the second half of 2013.

China white-box players' partnerships with regional brand vendors in emerging markets have also helped raise local consumers' demand for tablets with phone functions.

In the first half of 2013, most white-box tablets with phone functions adopted China-based Allwinner Technology's solution which combined an entry-level single-core processor with a discrete baseband module. However, many white-box device makers have turned to MediaTek solutions for their tablets since thesecond half of 2013 after the Taiwan-based chipmaker also integrated a baseband chip into its tablet processor solution.

MediaTek's solution is more expensive, but its support for product development and hardware design has given it an upper hand over competitions. Meanwhile, independent design houses (IDHs), which provide white-box players with product design services, also started to design tablets using MediaTek's smartphone processors in the second half of 2013, which prompted white-box players to adopt MediaTek's solutions.

Digitimes Research estimates that tablets with phone functions will account for 40% of 7-inch white-box tablet shipments in 2014, up from 20% in 2013.

Topics: Page 2

Realtime news
  • Taiwan premier worried about lack in investment in emerging industries

    Before Going to Press | 8h 23min ago

  • China-based smartphone vendor Meitu plans to offer IPO in Hong Kong in 4Q16

    Before Going to Press | 8h 24min ago

  • Taiwan July manufacturing production index up, says MOEA

    Before Going to Press | 8h 24min ago

  • Nvidia unveils Tegra Parker mobile SoC

    Before Going to Press | 8h 25min ago

  • HTC to take part in TGS 2016

    Before Going to Press | 9h 17min ago

  • Innolux, AUO to showcase 100-inch TV panel, AMOLED panels at Touch Taiwan 2016

    Before Going to Press | 9h 18min ago

  • Digitimes Research: China mobile AP shipments increase 8% in 2Q16

    Before Going to Press | 9h 20min ago

  • Digitimes Research: China IC designers expected to share up to 30% of 2016 global fingerprint sensor shipments

    Before Going to Press | 9h 26min ago

  • Taiwan market: Acer, Chunghwa Telecom cooperate to launch smart mobile office solution

    Before Going to Press | 9h 28min ago

  • Vendors mostly adopt on-board memory in Apollo Lake notebooks, say Taiwan makers

    Before Going to Press | 9h 30min ago

  • Sharp plans to buy back TV business operations in US, Europe

    Before Going to Press | 9h 34min ago

  • TSMC seeing 28nm chip orders slow down

    Before Going to Press | 9h 36min ago

  • TSMC orders equipment for NT$7.69 billion

    Before Going to Press | 9h 36min ago

Pause
 | 
View more

Taiwan server shipment forecast and industry analysis, 2016

RESEARCH EXTRAS | Apr 1, 15:47

Strong demand from the cloud computing market helped Taiwan's server shipments grow 12.5% on year to break 10 million units in 2015, accounting for 90.7% of worldwide shipments and the percentage is expected to grow to 91.1% in 2016. This Digitimes Research Special...

China smartphone touch-panel industry 2016 forecast

CHINA SMARTPHONE | Feb 6, 17:23

In 2016, China's smartphone panel capacity is expected to increase steadily, with BOE and Tianma expanding 6G capacity and GVO and Truly Optoelectronics increasing their share of handset panel production. This Digitimes Research Special Report analyzes the key...

Taiwan notebooks - 2Q 2016

TAIWAN MOBILE DEVICE | Aug 17, 14:37

Notebook brand vendors started replenishing their stocks in the second quarter after digesting their inventory in the previous quarter. The replenishment demand boosted their Taiwan-based ODM partners' shipments.

Taiwan LCD monitors – 2Q 2016

TAIWAN DISPLAY SYSTEM | Aug 16, 14:10

In terms on-year growth, the rebound that Taiwan's LCD monitor makers saw in their shipments in the first quarter of 2016 proved to be just a short break in a decline trend that continued in the second quarter. Such a trend is expected to continue through the...

Taiwan large-size LCD panels – 2Q 2016

TAIWAN LCD PANEL | Aug 11, 09:51

Taiwan's large-size LCD panel makers saw meaningful recovery in their shipments in the second quarter of 2016. Compared to the same period a year ago, Taiwan's second-quarter 2016 shipments grew slightly by 0.8%, but it already represents the first on-year growth...

Taiwan server shipment forecast and industry analysis, 2016
Trends and forecasts for the China FPD industry, 2014-2017
The transition to 4k TV - UHD TV market forecast, 2014-2017
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.