Google happy to see Acer, Asustek launch inexpensive tablets to hike Android penetration, say Taiwan makers

As Acer and Asustek Computer will soon launch 7-inch tablets for sale at about US$149, Google, although having cooperated with Asustek to develop the Nexus 7, is not worried about the competitive impact of US$149 tablets on sales and instead hopes the launches will increase the global market share of Android tablets, according to supply chain makers.

Acer will launch 7-inch tablets equipped with processors developed by MediaTek at US$99-149 in Asia and South America initially at the end of January, with target shipments of 500,000-600,000 units for the first quarter, the sources indicated.

Asustek will also launch 7-inch tablets at about US$149 in Taiwan, China, India and South America at the end of January, with target shipments of five million units for 2012, the sources said. Asustek, in order to minimize production costs, adopts processors developed by VIA Technologies and touch panels and key components supplied by second-tier makers for the tablets, the sources indicated.

Other vendors are expected to follow suit by launching inexpensive Android tablets, the sources noted. As such, Android tablets are likely to account for more than 50% of all tablets sold in 2013, the sources said.

In addition, Acer's and Asustek's inexpensive 7-inch tablets will bring negative impact on white-box tablet vendors, the sources indicated.