OEMs Feel the Fire, Cutting Back Tablet Production

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A new report suggests that PC hardware manufacturers like HP, Acer and Dell, will begin producing less tablets in 2012, possibly due to competition from low-cost devices with greater content offerings, including movies, music and eBooks.

The report, which cites sources from upstream supply chains, claims that manufacturers producing tablets without the rich content, like that of the iPad, Kindle Fire or NOOK Tablet, to back them up, were unable to find their niche in the tablet market.

Despite compartively impressive specs, many tablets produced by PC and mobile handset manufacturers have been unable to gain traction, according to the report, as it appears consumers want the most content at the best price. Additionally, the pure hardware competitors are unlikely to profit from the market through price competition, with Amazon offering its Kindle Fire tablet for $200. Amazon is taking a hit with every Fire sold, yet the company plans to make up those numbers, and more, through content sales.

While these sources may believe these hardware players are phasing out their Android tablet offerings, this report does not account for Windows 8 slates, as HP and Nokia are said to release tablets running the latest system from Microsoft.

Source: DigiTimes 




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