White box tablet: When it comes to the tablet industry, most consumers are well aware of which companies are leading the pack. For example, the Apple Inc. (NASDAQ:AAPL) iPad, including its mini tablet, are known for being the cream of the crop. Of course, there are other options on the market as well, including a variety of devices powered by the Android operating system.
With all this in mind, you don’t want to overlook what white box tablet vendors bring to the market. These companies may not get as much attention as brand vendors, however, the tablets they sell have a few nice features to offer.
According to Digitimes, white box tablet vendors have been forced to reduce their prices to better compete with each other as well as brand name tablets.
How are they able to slash prices in a market that has become so competitive? Through “entry-level ARM-based processor solutions from China-based chipmakers and help from China’s supply chain” these companies are able to lower the price of these devices, helping increase sales.
Let’s take a closer look at what white box tablet vendors are doing in the United States, more specifically at Walmart stores throughout the country.
Xelio has a seven inch model priced at $49. On top of this, the company also offers an eight inch device, powered by the Android OS, for $99. When you compare this price to those of brand vendors, such as the Apple iPad, it is easy to see which price is lower.
Did you know that Walmart sells more than 170 different types of tablets? Among them, you will find 51 devices priced less than $100. This alone goes a long way in showing how much penetration white box tablet vendors have been able to make as of late.
According to the same piece by Digitimes, citing a recent IDC study, market share among white box tablet vendors increased from 26 percent in the second quarter of 2012 to 39 percent in the same quarter of 2013.
Thanks to the price alone, consumers are attracted to white box tablet vendors. The features may not be as advanced and the reliability record is not the same, however, some consumers will overlook brand vendors because they want to save as much money as possible.
Is this something that should worry these hedge fund managers who are invested heavily in Apple? David Einhorn, Christopher Hansen, Jeffrey Edwards, Stuart Peterson, and Mark Diker. Check back here for more updates on white box tablets.