With surging popularity expected of Amazon.com’s tablet PC Kindle Fire during the holiday season, Taiwan supply chain partners are expected to benefit and see a rally of their shares continue into the yearend, experts said yesterday.
According to the US consumer portal PriceGrabber, Kindle Fire ranks as the second most wanted gift item in the United States during the holiday season. The Consumer Electronics Association, meanwhile, ranked the tablet as No. 1.
The Kindle Fire has gained huge popularity, despite competition from the iPad. Amazon’s strategy to price the new tablet’s 7-inch model at US$199 (S$258) has made the Kindle Fire the most sought-after item on Amazon.com.
According to analysts, sales of the tablet are epxected to top 5 million this year and 20 million next year. In the first quarter of 2012 alone, sales are expected to hit 8 million, with analysts anticipating the tablet to become the leader in the Android alliance of tablet PCs. Amazon is also expected to roll out the second generation of the device in May or June of next year.
Against this backdrop, Taiwan supply chain partners are expected to benefit. These include Hon Hai, which assembles the 10-inch tablet; E Ink, which provides the panel; as well as Quanta, which has reportedly received orders to provide data center solutions for Amazon.
Other Taiwan players to benefit from the new tablet include TPK Holding and Wintek, which make touch panels, as well as Novatek and Sitronix, which provide the semiconductor solutions, analysts said.