Supply chain
Digitimes Research: Samsung, Lenovo cutting tablet prices in the US market
Jim Hsiao, DIGITIMES Research, Taipei

Samsung Electronics and Lenovo have recently started a wave of price cuts for their tablets in the US market. Samsung offered price cuts for its 7- and 10-inch models, but their prices are still higher than those of its competitors. Lenovo reduced the price of its 8- and 10-inch entry-level tablets, further enhancing the devices' competitiveness in the market. Lenovo's 10-inch 16GB model is now priced below US$180.

Meanwhile, Asustek Computer's T100 and Acer's Switch 10 2-in-1s are seeing their prices gap narrow.

For the US' 7-inch 8GB tablet market segment, to counter its significant shipment drop in the second quarter, Samsung, in August, reduced the retail price of its 7-inch Galaxy Tab 3 7.0 Lite from US$149 to US$139, decreasing its price gap with other competitors' mainstream devices to only around US$10. Samsung also reduced its 7-inch Galaxy Tab 4 7.0 from US$199 to US$179, but the price point is still over US$30 more expensive than similar-level devices from competitors, Digitimes Research found.

Asustek joined the US' 7-inch 8GB tablet market segment with its US$129 entry-level ME170C. However, compared to Asustek's ME176C released in early June, the ME170C has inferior processor, panel, storage and version of Android, but their price gap is only about US$20, making the ME170C weaker in price/performance ratio than the ME176C.

Meanwhile, Lenovo's 7-inch 8GB tablet, the A7-40 has adopted MediaTek's quad-core solution, but is only priced around US$129. Digitimes Research believes first-tier vendors are trying to preserve as much profit as possible before competition during peak season starts.

Currently, tablet players that are most aggressive over pricing are second-tier vendors that are using solutions from China's supply chain. Hewlett-Packard (HP)'s 7 Plus tablet, which uses a chip solution from China-based Allwinner Technology and is assembled by China-based Neostra, is currently priced below US$100. Toshiba's Excite Go tablet, using Intel's China Tech Ecosystem (CTE) solution is also priced at US$99.

© 2020 DIGITIMES Inc. All rights reserved.
Please do not republish, publicly broadcast or publicly transmit content from this website without written permission from DIGITIMES Inc. Please contact us if you have any questions.