China-based white-box tablet vendors, due to stagnant growth in demand and increasing price competition, either have withdrawn from the market or are striving to shift to other product lines including smartphones, entry-level notebooks, smartwatches and smart bands, according to Taiwan-based supply chain makers.
Since brand vendors such as Amazon have been launching inexpensive tablet products to compete for market share, many white-box and small tablet brand vendors have forced out of the market. Their upstream component suppliers have also turned to first-tier tablet brand vendors for orders, the sources noted.
As for the sectors that white-box players have turned to, the wearable device market lacks differentiation and the entry barrier is low, which will likely result in price competition. Some have joined the electric vehicle industry, but the business is unlikely to bring any significant growth in revenues.
The sources are also concerned that white-box players' shift of focus could create pressure on existing firms, and these sectors may also suffer the same fate as that for the white-box tablet sector.
