ODMs see weaker profits from tablet business

As Google and Amazon reportedly will release their next-generation 7-inch entry-level tablets in the near future, sources from the upstream supply chain have estimated that related ODMs' profits from these tablets will be about 20% less than those from notebooks.

Since tablets have a simpler design than notebooks, the ODMs are only able to earn about US$9-10 for each tablet made, lower than US$13-20 for notebooks.

In addition, fewer components needed means that ODMs will have difficulties using their purchasing advantages to earn profits, and tablet brand vendors' demand for specific components will also impact the makers' profits, the sources noted.

Seeing weak growth in the notebook industry, most ODMs have turned to place their focuses on the tablet market and are competing aggressively for orders through price cuts, the sources said.

Source:    DigiTimes

26 марта 2013