The ex-factory price for an 8-inch entry-level tablet using an Intel processor and Windows operating system has also reduced to about US$50. Some players expect entry-level to mid-range portable devices' rising price/performance ratio to help expand the market's overall scale, but the trend may also further impact their profitability and shipment growth for high-end models.
Although Computex 2015 is not a show hosted specifically for portable end devices, many China-based players still brought their new smartphones and tablets to exhibit, showcasing their hardware and strong capability to manage costs.
China-based players are mainly focusing on wearable devices, flying machines, smartphones and tablets, and they are also offering competitive quotes.
For tablets, a 7-inch entry-level model equipped with a 3G module, MediaTek's dual-core chip solution, 4GB storage, a 2,000mAh battery and 3-megapixel front- and back-end cameras, has a quote of about US$30-35 with a requirement of ordering at least 5,000 units a time.
Meanwhile, China-based IT manufacturers are offering Windows-based 8-inch tablets at around US$50-55.
As for smartphone products, a 5-inch entry-level device with Android 4.4, a quad-core processor, and 4GB storage has a quote of about US$35. China players are also able to offer products using Intel and Rockchip's jointly developed SoFIA solution. Since Intel is still providing subsidies to players making devices using SoFIA, demand for the platform from China's mobile device industry has been rising recently.
Despite the fact that large-size 3G and LTE smartphones have gradually become mainstream in the worldwide market, some emerging markets that still have weak 3G and LTE networks, rely heavily on GSM and GPRS. To satisfy demand for GSM-supported handsets, some China players are even able to offer manufacturing services for traditional folding- and candybar-type feature phones, and ex-factory prices are only around US$10.
Although China's portable end device players during the past few years have been severely impacted by sharp price drops of first-tier brand vendors' entry-level to mid-range products as well as the issue of differentiation compared to competitors, the players are still able to find a space to survive thanks to advantages such as improved manufacturing ability, supply chain partners starting to gather to form hubs, and strong cost management, and the fact that demand from emerging markets is still strong.
In addition, China players that are still operating in the mobile device market are a lot more durable than before after having been through fierce competition.
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