White labelled devices are quickly capturing an ever growing fraction of the tablet market which is currently dominated by the iPad 2.
Digitimes reports that by some count (opens in new tab), so-called White-box players account for one in every five tablets sold, and their combined marketshare would make them the second biggest player behind the iPad 2 and ahead of every other tablet manufacturer like ZTE, HTC and Samsung.
Many white-box tablet PC makers have adopted 7-inch resistive touchscreen displays with a predilection for the low-cost VIA Technologies VIA8650 SoC and Android 2.2 OS.
Digitimes notes that these retail for as little as $69 compared to nearly nine times that price for a top of the range HTC Flyer tablet.
Because of the cut-throat competition at the lower end of the market, manufacturers can cut down on margins and offer competitive devices for much less than Tier-one vendors.
The downside of this race to the bottom is that white-labelled box players tend not to have the same level of safety testing as the big guns, which means that products can be damaged or have dangerous manufacturing defects.
The next step for these numerous vendors is to start moving upmarket and introduce tablets with better hardware including ARM Cortex SoC, capacitive screens, more RAM and onboard memory as well.