Chinese Tablet PC Suppliers Churning Out iPad Rivals

Chinese tablet PC suppliers have decided to add more features to their products and drop prices so as to compete against Apple’s iPad, PRNewswire reveals citing a Global Sources report.

The 7-, 8-, 9.7- and 10-inch tablet PCs are integrating GPS features, webcams and eBook readers, and are between 5-15% cheaper than before.

"[...] China’s output of tablet PCs is expected to surge 20 to 30 per cent this year from nearly 2 million units in 2010. With the sector looking attractive, new suppliers are entering the line”, Livia Yip, publisher of the report, said explaining the phenomenon.

The wave of cheaper tablet PCs started off one month after the iPad’s launch when 60% of all Chinese portable device manufacturers invaded the market with their products.

7-inch tablet PCs are the most popular version among young people because they are cheaper than other large screen display models.

"7-inch models ebb to a 60% production share, as 8- and 9.7-inch versions climb to 15% and 10%, respectively," Yip stated.

Chinese tablet PC suppliers fear that the Yuan’s appreciation and growing labour and raw material costs will force them to give up price reductions in the future. Meanwhile, they are trying to find new markets in the Middle East and Southeast Asia and bolster their American and European export business.