Wednesday, August 22, 2012

Tablets: Waves Of Price Cuts Coming, Says DigiTimes

In case you missed them, DigiTimes offered up a couple of interesting missives regarding the tablet computer market today.

Aaron Lee and Adam Hwang write that that “several waves of price cuts are expected in the new year” to clear a high level of inventory of tablets running Google’s (GOOG) Android operating system after the holidays, citing anonymous sources in Taiwan’s supply chain.

That inventory is largely due to the initial ramp in production of 7-inch tablets, including the recently released Amazon.com (AMZN) “Kindle Fire” and Barnes & Noble’s (BKS) “Nook Tablet.” Inventory is running 3 to 4 million units, according to IDC data cited by Lee and Hwang.

And a piece by Max Wang and Joseph Tsai claims that the “white box” tablet market is set to put pressure on the prices of top-tier tablet vendors. White box is a term often used to describe computer makers who are not the well-known name brands, but rather B- or C-tier players.

“Average prices of a 7-inch white-box tablet PC that features Android 2.x have already dropped to as low as US$75, targeting the year-end holiday season in North America,” they write.

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