Price competition in the global tablet market is expected to become keener in 2014, which will not only further squeeze the profitability of first-tier vendors but also force white-box makers in China out of the market, according to industry sources.
Since the markets in the US and Europe have become mature and global tablet shipment momentum has slowed down, Samsung Electronics has turned to aggressive pricing, while other first-tier vendors including Google, Amazon, Hewlett-Packard (HP), Lenovo, Acer and Asustek Computer have offered 7-inch models priced at US$159-199 to promote tablet sales, the sources indicated.
Moreover, some vendors were even offering the mainstream 7-inch models at US$100-149 in the year-end buying season of 2013, a price strategy seen before in the netbook market, the sources added.
While Samsung has not yet announced prices for its recently unveiled Galaxy Tab 3 Lite family products, some market watchers expect the lowest-priced Galaxy Tab 3 Lite version to be available for US$129.
Samsung's aggressive pricing will add more pressure on Acer, Asustek, Lenovo and HP to lower the prices of their US$159-199 7-inch models, the sources contended.
To cope with increasing competition, a number of China-based white-box makers, in cooperation with Intel, have released 7-inch tablets priced below US$100, said the sources, adding that some notebook vendors are also expected to launch Intel-based tablets for below US$159 in the second half of 2014.
