Low priced tablet PCs may bring down supply chain gross margins
Yenting Chen, Taipei; Steve Shen, DIGITIMES [Tuesday 15 November 2011]
Price competition between Amazon and
Barnes & Noble in the 7-inch tablet PC market is likely to squeeze
the gross margins of Taiwan-based upstream suppliers, according to
Amazon will officially begin to sell
its 7-inch Kindle Fire tablets at US$199 on November 15, while Barnes
& Noble will start marketing its 7-inch Nook Tablets at US$249 on
November 18, the sources indicated.
Pre-sale orders for
Kindle Fire tablets has reportedly reached 1.5 million units, and
Amazon may take delivery of up to five million units before year-end
2011 if sales momentum continues after November 15, the sources
While outsourcing the production of the
7-inch Kindle Fire to Quanta Computer, Amazon reportedly plans to add
new makers to its supplier list for touch modules and touch sensors in
2012 – a move which may push Taiwan makers to lower their quotes in
order to win orders.
Barnes & Noble has taken
delivery of 2-2.5 million Nook Color e-book readers since the device
launched in November 2010 and is expected to order 800,000-900,000 units
of Nook Tablet initially, the sources indicated.