China suppliers of tablet PCs chase iPad's popularity with value-added models and lower prices

Global Sources' China Sourcing Report: Tablet PCs reveals up to 15% price cuts even with webcam, e-book and GPS functionality

HONG KONG, June 9, 2011 /PRNewswire-Asia/ -- China suppliers of tablet PCs are adding value with more functions and dropping prices to beat competition, as they ride on the coattails of the iPad's popularity. This is according to Global Sources' (NASDAQ: GSOL) China Sourcing Report: Tablet PCs (http://www.chinasourcingreports.com/tabletpcs).

The Report covers the major types of tablet PCs produced in China, namely the 7-, 8-, 9.7- and 10-inch variants. It shows manufacturers boosting competitiveness by incorporating value enhancements such as webcams, e-book readers and GPS functions to rival the iPad.

Publisher of the Report, Livia Yip, said: "Amid robust demand, China's output of tablet PCs is expected to surge 20 to 30 percent this year from nearly 2 million units in 2010. With the sector looking attractive, new suppliers are entering the line.

"In fact, just one month after the iPad was first launched, 60 percent of China's netbook manufacturers and many of its portable media player suppliers started rolling out tablet PCs as cost-effective alternatives. Companies with these manufacturing backgrounds can hit the ground running with their existing R&D and production capability in consumer electronics and computer products."

According to the Report, 7-inch models still dominate the latest releases, thanks to their lower price and partly because of their appeal to the growing youth market. Even so, suppliers are expanding production to more units with larger touchscreens under efforts to increase orders. "Estimates see 7-inch models ebbing to a 60 percent production share, as 8- and 9.7-inch versions climb to 15 percent and 10 percent, respectively," Yip added.

Suppliers vie for orders with lower prices, broader markets

China Sourcing Report: Tablets PCs reveals that manufacturers' strategies for overcoming stiff competition include price cuts and greater marketing efforts. Of suppliers surveyed, two-thirds are lowering quotes. Reductions range generally between 5 and 10 percent, but some companies seek an edge with cuts as deep as 15 percent.

Although export quotes are currently falling, interviewed suppliers see rising labor and raw material costs and the yuan's appreciation against the US dollar as pricing threats in the coming months.

To support earnings, manufacturers are intensifying efforts to cultivate new export destinations in Southeast Asia and the Middle East, while strengthening traditional markets in North America and Europe.

Other industry trends indicated by China Sourcing Report: Tablet PCs include:

• 87% of suppliers plan to boost capital expenditure by up to 50 percent to strengthen capability
• 67% of manufacturers anticipate export sales rising by more than 20% this year
• 41% of companies regard pricing as their biggest challenge

Supplier profiles, price forecasts, and the latest tablet PCs for export

The 51-page China Sourcing Report: Tablet PCs provides detailed profiles of 24 suppliers with verified manufacturing and export credentials. It also includes a Product Gallery featuring 63 of the most popular export models, with key specifications and full-color pictures.

The Report's surveys, price trends and supply forecasts aim to help buyers make better-informed purchasing decisions.

Specialized Global Sources websites, face-to-face events, trade magazines and research reports

China Sourcing Reports are part of Global Sources' sourcing and product information services. These include Global Sources Online (http://www.globalsources.com), China Sourcing Fairs (http://www.chinasourcingfair.com), Private Sourcing Events (http://www.PrivateSourcingEvents.com) and Global Sources monthly magazines (http://www.globalsources.com/SITE/MAGAZINES.HTM).

For more information about Global Sources' products and services that connect quality buyers with verified suppliers, visit http://www.corporate.globalsources.com.

China Sourcing Report: Tablet PCs is available for purchase at http://www.chinasourcingreports.com/tabletpcs .

Free information about China suppliers of tablet PCs can be found at http://www.chinasuppliers.globalsources.com/china-suppliers/Tablet-PC.htm .

About Global Sources

Global Sources is a leading business-to-business media company and a primary facilitator of trade with Greater China. The core business uses English-language media to facilitate trade from Greater China to the world. The other business segment utilizes Chinese-language media to enable companies to sell to, and within Greater China.

The company provides sourcing information to volume buyers and integrated marketing services to suppliers. It helps a community of over 1 million active buyers - including the world's top 25 retailers - to source more profitably from complex overseas supply markets. With the goal of providing the most effective ways possible to advertise, market and sell, Global Sources enables suppliers to sell to hard-to-reach buyers in over 240 countries.

The company offers the most extensive range of media and export marketing services in the industries it serves. It delivers information on over 5.7 million products and more than 262,000 suppliers annually through 14 online marketplaces, 13 monthly print and 18 digital magazines, over 90 sourcing research reports and 73 specialized trade shows a year across nine cities.

Verified suppliers receive more than 127 million sales leads annually from buyers through Global Sources Online (http://www.globalsources.com) alone.

Global Sources has been facilitating global trade for 40 years. Global Sources' network covers about 60 cities worldwide. In mainland China, Global Sources has about 2,700 team members in more than 40 locations, and a community of over 2.8 million registered online users and magazine readers for its Chinese-language media.