Samsung, White Boxes Constrict Taiwan Tablet Brands

May 1 2014, 7:56pm CDT | by

Acer is pumping out new tablet announcements and a market research report calls cross-town rival Asustek the world’s No. 4 brand of the tiny, touch-screen computers. The two flagship Taiwanese PC developers suddenly look like serious contenders in the world’s still growing tablet PC market. But both will eventually get filed away to a lonely middle-ground position as Samsung grabs high-end consumers and white box brands outcompete on price.

Asustek should rank as the fourth biggest tablet producer in the first half of the year at 6.5% of global market share, Taipei-based DigiTimes Research says in a report on Monday, up from 2.6% in January through June of 2013. Half its first-quarter share this year came from sales of the Transformer Book T100 model tablet, which runs on Windows 8.1 and includes a seldom found detachable keyboard, research firm analyst Jim Hsiao says. Acer is looking at a first-half market share of just 1.7% but has caught attention for holding prices down, for example $207 for its phone-equipped Iconia Tab 7 that was announced on Wednesday. The same day it said a 2-in-1 notebook-tablet tool is on the way for $380. Tablet sales across brands will rise 19.4% this year to 260.9 million units, according to US market research firm IDC.

Yet by year’s end the Taiwanese brands will be boxed in. Samsung will overshadow them with its more numerous choices, user-friendly software and a dedication to high-end consumers. Consumers already see Samsung tablets as credible iPad alternatives. The Korean brand’s tablet market share should rise this year from 16.9% to 21.4%, the Taiwan government-backed Market Intelligence and Consulting Institute says. DigiTimes Research tips its first-half share to extend from 15.3% last year to 24.8% this year.

Another competitor, Lenovo, will cramp its Taiwanese peers by building on historic name recognition in China, the world’s biggest buyer of mobile devices as of last year.

White box brands threaten Taiwan’s contenders from the low end. They’re often made in China where the whole supply chain, from panels to batteries, runs up less of a bill than in Taiwan. Some white boxers even buy used parts, says Joen Yang, an analyst with the government-supported institute. Better known tablet brands have already overlooked Taiwan for China for contract assembly work. The combined market share of these obscure brands will grow from 36.9% in the first half of 2013 to 43.7% in the same period this year, DigiTimes Research says. The Market Intelligence and Consulting Institute expects white box brands to see last year’s 29.3% share rise to 30.8% in 2014.

“The seven-inch tablet market was already mature in 2013, so Lenovo and the white box brands will move in now,” says Hsiao, calling both a threat to Asustek in particular. (See Asustek’s mobile device story here.) Analysts take already ailing Acer less seriously over the tablet long term for lack of strong in-house R&D.

Acer and Asustek will keep launching tablets but look to conventional PCs for revenue. “Taiwan’s tablet brands will get stuck in an embarrassing middle position.” Yang says.

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Apple Ends The iPod Classic
Apple Ends The iPod Classic
Tim Cook says supply chain problems caused the decision
 
 
Will Apple’s Watch Kill The Fitness Band Market?
Will Apple’s Watch Kill The Fitness Band Market?
Analysts are wondering whether or not Apple is preparing for a total takeover.
 
 
When Is Apple Pay Coming To Canada?
When Is Apple Pay Coming To Canada?
Canadian customers could be waiting a while
 
 
What Is Next For Beats?
What Is Next For Beats?
iTunes sales are down and Apple has just acquired another music platform
 
 
 

Latest from the Network

Koji Uerhara Signs 2-Year, $18M Deal With Boston Red Sox
Ace Japanese closer Koji Uehara signed a two-year deal with the Boston Red Sox on Oct. 30.According to MLB.com's Ian Browne, Uehara's deal is worth $18 million:"Perhaps it was fitting that the Red Sox announced a two-...
Read more on Sport Balla
 
Finnish scientists identify new type of black hole
Helsinki, Oct 31 (IANS) Finnish researchers have discovered a new type of low-mass black hole, which is a bright celestial body that emits X-ray, the University of Turku has said. Researchers at the Finnish university...
Read more on Business Balla
 
Union Carbide ex-chief Warren Anderson is dead
Washington, Oct 31 (IANS) Warren Anderson, former chief executive officer of the Union Carbide Corporation, is dead, a media report said Friday. He was 92. His death revived memories of the 1984 Bhopal gas tragedy. He...
Read more on Business Balla
 
Himalayan Viagra fuels gold rush for local Tibetans
Washington, Oct 31 (IANS) Overwhelmed by people trying to find the prized medicinal fungus known as Himalayan Viagra, two isolated Tibetan communities have managed to implement a successful system for the sustainable...
Read more on Business Balla
 
Oceans were always there on Earth: Scientists
Washington, Oct 31 (IANS) Debunking previous theories that water came late to Earth well after the planet had formed, researchers have significantly moved back the clock for the first evidence of water on Earth and in...
Read more on Business Balla
 
Wearable health devices key for safe space tourism
New York, Oct 31 (IANS) At a time when several firms are developing spacecrafts to take ordinary citizens on short trips into space, scientists have outlined the risks and challenges involved in human commercial...
Read more on Business Balla
 
Early Walmart Cyber Monday 2014 Sale and Holiday 2014 Sale announced
Walmart has revealed their first Holiday 2014 sales details. Starting Saturday Walmart will offer over 20,000 rollback deals. New this year are early Walmart Cyber Monday 2014 sales starting midnight on walmart.com.On...
Read more on Black Friday Countdown
 
Nestle to introduce robots as sales clerks
Tokyo, Oct 31 (IANS/EFE) Nestle will use robots as sales clerks at its outlets selling coffee makers in Japan, an initiative that will later spread worldwide, a Nestle spokesperson confirmed to EFE news agency....
Read more on Celebrity Balla
 
Healthy diet for infants prevents obesity later
New York, Oct 31 (IANS) If you do not want your baby to grow up into an overweight adult, make sure you feed him or her healthy diet from the very first year, a study suggests. Babies who eat diets high in sugar, fat...
Read more on Business Balla
 
Popular mosquito catcher in Japan uses human odour as bait
Tokyo, Oct 31 (IANS) A novel mosquito trap that lures its prey using human scent and other smells favoured by the critter is creating a buzz as Japan frets about the spread of dengue fever. The boxlike device is the...
Read more on Business Balla