PC-makers turn to low-cost tablet market

Even though low-cost tablet market doesnt allow companies to make big profit margins, PC makers are seeing potential in number of sales.

A price around $120-$140 looks unrealistic to the quality of a major tech brand but becoming a target for companies like Asus, Acer, HP and Lenovo. Some of them already launched their “under $200” priced models including Asus Memo Pad and HPs Slate 7.

Asus wants to make its tablet widely available “in the hands of every consumer”, says Jeff Yang for Financial Times. The company’s marketing chief added, “We would … like to transform their expectations about value.”

The new tablets are the PC-makers response to declining desktop and laptop computer sales. Instead of competing with tech giants those firms prefer to follow same strategy of low-cost quality devices. That aims to offset losses and keep them in tact with recent trends and user preferences. According to Acer, aiming at low cost tablets would increase sales three times.

However, analysts consider this move may cause a reducing margins that are already too thin which suggests that some companies could turn unprofitable from those products.

MediaTek, chip designer based in Taiwan is one of the main suppliers and reason for the low price of the budget tablets. Asus’ Memo device includes a quad-core chip that MediaTek recently manufactured. New tablets from Acer and Lenovo also use MediaTek chips. The chip maker has recently upgraded sale projections by roughly 50% of increase.