Notebook sales are down but tablet sales are up, more than enough to replace them. That all sounds like good news, unless you are an ODM in which case you may be worried since the profits to be made from tablets compared to notebooks is less.
Digitimes reports: "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."
Suppliers of chips for tablets, like VIA and VIA's WonderMedia, are also affected by this trend since they and their competitors will have to get very aggressive in pricing in order to get sales.
Digitimes reports: "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."
Suppliers of chips for tablets, like VIA and VIA's WonderMedia, are also affected by this trend since they and their competitors will have to get very aggressive in pricing in order to get sales.
