Tag: white-box tablets

Cheap tablets start to make their mark

cheap-tabletsEver since Google launched its $199 Nexus 7 last year, tablet makers have been looking for ways to come up with even cheaper devices to undercut Google and other brands who targeted the sub-$200 space. Smaller form factors were popularised by Apple’s iPad mini, too. As a result the tablet underwent a massive transformation over the last 12 to 15 months in what can only be described as a race to the bottom. However, we’re not at the bottom just yet.

Big brands have started rolling out cheaper devices, first hitting the $149 mark and now going towards $99. The white-box gang is already there and cheap tablets are slowly making their presence felt. According to Bloomberg, sales of sub-$149 tablets will account for almost 35 percent of the US market next year, up from 25 percent in 2011.

However, cheap tablets have evolved. The average $199 or $149 tablet two years ago was absolutely horrible, but this is no longer the case. Here are a few examples proving that cheap tablets have come a long way.

The cheap white-box tablet, anno 2011, usually shipped with 512MB of memory, single-core A8 processor and low-res 1024×600 or 1024×768 TN panel. Some even featured outdated resistive touchscreens. However, 1GB of RAM is now the bare minimum, while many cheap tablets already pack 2GB. Practically all cheap tablets now sport IPS panels and it’s even possible to get a WUXGA (2048×1536) tablet for as little as $200, or ~€160 in Euroland. Dual-core A9 or quad-core A7 processors are standard, but there are even some A9 quads available for that sort of money.

Components are getting ridiculously cheap, allowing vendors to add more for less. This is especially true of processors and displays.

Several companies are churning out cheap ARM SoCs and it is estimated that Rockchip can sell a SoC for as little as $5. MediaTek is currently shipping one in five SoCs on the planet and most of them are cheap, A7-based parts. Prices of relatively high-quality IPS displays have tumbled as well and many cost less than $10. Prices or RAM and NAND have gone down as well, but the drop wasn’t as drastic. All in all, Bloomberg reckons the cost of components used in today’s cheap and cheerful tablets is $60, down from $175 in 2011.

It should be noted that cheap tablets, or the companies behind them, don’t get nearly as much press as they should. After all, cheap tablets will make up a third of all tablet shipments next year, but tech sites are focusing on clickbait, pricey high-end models churned out by brands who tend to advertise on the same sites.

It’s all somewhat reminiscent of the vanilla PC boom in the mid eighties, although we don’t believe cheap tablets can replicate the success of cheap PCs three decades ago.

Cheap tablets are getting even cheaper

cheap-tabletsNow that even grocers are targeting the 7-inch tablet segment, the dog eat dog of cheap tablets is getting even more brutal. Chinese white-box players are further cutting their prices, according to channel sources cited by Digitimes.

A quick glance at tablet prices in the UK and the continent reveals that there are already heaps of tablets priced at £99 or less, with some truly cheap models going for as little as £49.

What’s more, some big vendors like Asus, Acer and Lenovo also have products at or close to the £99 mark and let’s not forget Tesco’s impressive Hudl, which is priced at £119 yet it features a much better screen than similarly priced tablets.

Google and Amazon had a thing or two to do with this trend. The Kindle Fire and Nexus 7 series of tablets reinvented the £199 space last year, so quite a few companies introduced similar products and similar price points. As a result, the white-box crowd has no choice but to run for the hills, or in this case for the bargain bin.

This doesn’t appear to bode well for big brands. It was recently reported that Google was forced to slash orders for the second generation Nexus 7 due to soft demand. People who want cheap tablets seem to be going after even cheaper models and the £/$199 price point is now practically reserved for high-end 7-inch tablets.

In addition, the market share of small white-box outfits is going up, from 26 percent in Q2 2012 to 39 percent in Q2 2013. The top five brands are losing share, but if the prices of entry level Asus, Acer and Lenovo tablets are anything to go by – they are not far behind in the race to the bottom.