Taiwan-based notebook maker Quanta Computer has recently received OEM orders from Amazon for its reported tablet PC and the device will also receive full support from Taiwan-based electrophoretic display (EPD) maker E Ink Holdings (EIH) for supplying touch panel as well as providing its Fringe Field Switching (FFS) technology, according to sources from upstream component makers.
What’s more, with a fully-fledged hardware team, Chinese factories at the ready, the open source Android operating system, Amazon’s app store and media stores, its big advertising unit and its own huge distribution power, this is a move that is well within Amazon’s reach.
What Amazon really needs to do to keep Kindle relevant is to keep lowering the price, but it’s doing that and an Amazon tablet can also be a huge hit.
The device’s monthly orders during the peak season are expected to reach about 700,000-800,000 units and Quanta is expected to start shipping as soon as the second half of 2011 with the orders to contribute more than NT$100 billion (US$3.5 billion) to Quanta’s annual revenues in 2011, the sources noted. In response to the report, Quanta declined to comment on its clients.
In addition to Amazon, Quanta is currently also the tablet PC OEM partner of RIM and Sony, while the company has also been aggressive in contact with Lenovo in hoping to land orders from the company for its second-generation LePad.
The sources pointed out that Amazon’s Kindle still has strong sales, but the e-book reader is currently still unable to successfully cut into the markets outside of North America and Europe; therefore, Amazon internally plans to reduce Kindle’s market price to attract consumer demand from the education and consumer market, while will push tablet PC using its advantage in software and content resources to challenge iPad2.
Photo credit: Tablets with Android