China-based tablet supply chain makers such as Holitech, Shenzhen DPT-Touch and Silead, in view of decreasing orders from China-based white-box vendors, have been seeking orders for other applications such as smartphones, industrial control, automotive devices and wearables, according to industry sources.
The sources pointed out that Apple has turned conservative about its tablet product line and is not planning to release a next-generation model to replace the existing iPad Air tablet; however, Apple is ready to release its fourth-generation iPad mini and the related supply chain is already preparing the device's components. The fourth-generation model will only have a few small upgrades from the third-generation one.
Since demand for tablets has not been as strong as in previous years recently, and even Apple, the best performing tablet player in the industry, is facing the same trend, the upstream supply chain has started turning to look for orders somewhere else.
With large-size smartphones also biting off demand, tablet vendors such as Apple, Samsung, Lenovo, Asustek Computer and Amazon are expected to face more pressure on their sales performance.
