Tablet processor price wars could benefit smartphones

Quad-core chips fallen to just $8

It appears that newer, mostly Chinese tablet processor makers are competing so vigorously that the price of chips has dropped dramatically. A quad core tablet processor can cost as little as $8, apparently. This has meant that an iPad mini copy can be sold for just $50 in India and China. The spat is also spilling over into the smartphone processor sector where even Taiwan’s MediaTek and Nvidia are being undercut.

The dominant chip suppliers for low cost smartphones are Qualcomm of the USA plus Nvidia and MediaTek.

They are reputedly being undercut by a new entrant – Spreadtrum. The worry amongst chip producers is that this trend could depress the price of high end smartphone processors as well.

In terms of tablet processors, the disruptive players appear to be Fujian-based Fuzhou Rockchip Electronics and Guangdong-based Allwinner.

Chinese manufacturers are using these processors to create tablets which are competitively enough priced to target users in India and China. Obviously the OS they are using is Android.

A side effect of this trend is that globally the price of a typical tablet is falling from $522 in Q1 2012 to $461 in Q1 2013, according to Canalys.

What GoMo News doesn’t know, however, is just how many of these tablets are able to accept 3G SIM cards for true mobility.

About Hans Cett

Hans Cett is an established freelance author and consultant specialising in the mobile communications industry. He also writes for Countdown2MWC - http://countdown2mwc.wordpress.com/
This article was published in China, India and Asia Pacific, Mobile Devices, tablets and tagged , , , , , , . Bookmark the permalink.

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