As China-based white-box makers are turning their focus from netbooks to tablet PCs, sources from first-tier notebook vendors believe the white-box market will still fail based on experience from netbook-competition which shows what the result of a price war will be.

The sources pointed out that most of the first-tier notebook brands are currently putting their focus on offering a device capable of creating a threat to Apple's iPad and China's white-box industry is not a big concern currently; however, its low-price strategy will still have an impact on overall tablet PC ASPs.

The sources pointed out that there are already several iPad-like white-box tablet PCs showing up in the channel in Shenzhen, China, and some white-box players are even offering different chassis designs for vendors to pick and assemble.

Sources from China's white-box players pointed out that tablet PC hardware design and production is not difficult and the major difference between the production of netbooks and tablet PCs is that they have to pay higher prices for Wintel's platform. Since consumers do not see Wintel platform as a necessary requirement for tablet PCs, while the ARM/Android platform is cheaper, the white-box players believe they will have more chance to succeed.

White-box players also believe that even though they have inferior quality over hardware and software, with the addition of GPS, WiDi, micro projector and e-book reading capabilities, as well as a price point of half the mainstream tablet PC's price, their products can still attract consumers from emerging markets such as China, India and the Middle-East.

However, some white-box players admitted that their rush into the tablet PC market is high risk, since if first-tier vendors or vendors with medium price/performance ratio products start a price war in the second quarter of 2011, they are likely to face tough competition.