Acer, the world's fourth largest PC maker, is reportedly becoming the first heavy hitter in the industry to make a tablet that — at $99 a pop — will be inexpensive enough to be within reach of a wide range of buyers in developing countries. Chinese companies making no-name budget tablets should be nervous, says Eva Dou at The Wall Street Journal. "At seven inches with a 1024 x 600 resolution screen and 1.2GHz dual-core processor, the so-called Iconia B1 tablet will have somewhat similar specs to Amazon.com Inc.'s Kindle Fire and the Barnes & Noble Inc.'s Nook Color," but it will undercut their lowest prices by $40 (although the final shelf price might vary from country to country). Dou continues:
Acer's pursuit of lower-priced tablets will cut into its margins, but will help it secure a stronger foothold in the rapidly growing China market, said Daiwa Securities analyst Christine Wang."Chinese white-box tablet makers are expected to sell some 60 million tablets next year, so it is a really big market," she said. "None of the major PC brands sells a tablet right now priced to compete with them right now."
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