Taipei, Thursday, November 26, 2015 07:46 (GMT+8)
mostly cloudy
Digitimes Research: White-box tablet shipments to reach 25 million in 3Q13
Anthony Chen, DIGITIMES Research, Taipei [Monday 11 November 2013]

China white-box tablet shipments reached about 25 million units in the third quarter of 2013, up 56.3% sequentially and 40.4% on year thanks to strong overseas shipments, which accounted for 80% of the total volume. Among white-box tablet shipments, 7-inch models accounted for the largest share, while 8-inch models, which were originally expected to become new star products, were unable to do so because of high costs from the bezel design and limited supply of 8-inch panels.

Although white-box tablets are expected to see extraordinary growth in 2013, they are also expected to face more obstacles and challenges in the future. First, they will see strong price competition from large brand vendors, which will offer Android-based products at price levels similar to those of white-box models. Second, the tablet market will gradually reach saturation and should no longer see demand as strong as before.

Third, white-box tablet costs have already hit the bottom margin, causing related assembly service providers and component suppliers to see limited profits. Several unhealthy players were already been eliminated from the market at the end of the second quarter, while the remaining players will need to rely on pumping up their shipments to support their profitability. However, such a strategy is unlikely to sustain for long, Digitimes Research noted.

Digitimes Research also found that white-box tablets in Europe or North America are mostly used as gifts in product promotions or bundling deals and therefore specifications are not as high as those of regular tablets. As for emerging markets such as Eastern Europe, Southeast Asia and Latin America, most consumers are buying white-box tablets with a single-core processor, because of limited purchasing power.

As for application processors (APs), 70% of white-box tablets with phone functions adopted solutions from MediaTek in the third quarter, replacing the solutions from China-based Allwinner, the original favorite. Digitimes Research estimates that the proportion of white-box Wi-Fi-only tablets using MediaTek's solution will also increase dramatically starting the fourth quarter, further impacting China-based Allwinner and Rockchip's AP shipments. In addition to low prices, China-based AP suppliers will also need to consider how to create additional value for their APs to survive the competition.

Realtime news
  • TEEMA urges Taiwan government to take action on China hostile headhunting

    Before Going to Press | 9h 53min ago

  • ASE to expand workforce at Chungli facility

    Before Going to Press | 9h 54min ago

  • All-in-one PC shipments to drop over 10% in 2015

    Before Going to Press | 10h ago

  • Acer launches Predator series products in Taiwan, eying opportunity from IT Month show

    Before Going to Press | 10h 1min ago

  • Taiwan PCB production value increases over 7% sequentially in 3Q15

    Before Going to Press | 10h 8min ago

  • D-Link sees strong smart home product sales in Europe

    Before Going to Press | 10h 12min ago

  • Korea government to invest US$110 million into wearables development, says report

    Before Going to Press | 10h 20min ago

  • Global LCD TV shipments to grow 2% in 2016

    Before Going to Press | 10h 25min ago

  • Himax obtains design-wins for smartphone-use force touch solutions

    Before Going to Press | 10h 28min ago

  • ZTE receives government funds to accelerate development of in-house mobile processors

    Before Going to Press | 10h 32min ago

  • TSMC may raise dividend for 2016

    Before Going to Press | 10h 33min ago

  • Sales of 40-inch TVs in Japan strong in October

    Before Going to Press | 10h 35min ago

  • Taiwan notebook makers seeking lower chip quotes for 2016

    Before Going to Press | 10h 36min ago

  • TWM withdraws from bidding for 2,500-2,600MHz bands

    Before Going to Press | 10h 39min ago

  • Digitimes Research: Japan telecom operators offering household robots to boost revenues

    Before Going to Press | 10h 49min ago

View more
Display panels for wearable devices
Taiwan server shipment forecast and industry analysis, 2015
The transition to 4k TV - UHD TV market forecast, 2014-2017
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.