Quanta Computer has begun volume production of RIM's PlayBook tablets with shipments in the first quarter of 2011 expected to top one million units competing head-to-head with the 700,000-800,000 Xoom tablets to be rolled out by Motorola, according to industry sources. Quanta declined to comment.

A number of executives from Taiwan-based notebook makers have given recommendations on PlayBook's OS and users interface after they tried on the gadget at CES, the sources noted.

RIM will launch the PlayBook with Wi-FI functionality in March before coming out with a 3G version that will enable Push Mail functions. The smartphone vendor will launch a 4G-enabled PlayBook in cooperation with Sprint Nextel in the second quarter.

Motorola plans will roll out Wi-Fi and 3G-enabled Xoom tablets, which are outsourced to Compal Electronics, in the first quarter and then a LTE version in the second quarter with Verizon Wireless, the sources indicated.