ODM/OEM phone makers who recently entered the tablet biz seem to be more keen on 4-5 inch smartphone development recently, seeing that Android tablets are not performing that well, according to inside sources. Apart from Samsung Electronics, a company with a 10% share of the global tablet PC segment, players like Motorola and RIM seem to regret their decision.

Motorola Mobility is probably not happy with the way its XOOM is doing, while RIM reported lower profits than estimated and LG and HTC are only beginning their foray into the tablet segment. Tablet and handset vendors will probably reduce their investments into the development of 7 to 10 inch slates, while going back to smartphones.

They may also be “scared” of the monster that Apple has become in the tablet segment as well, thanks to the iPad 2. We have yet to see a real slate to beat the iPad, but once that is out, there will be a chance for major players to get back into the game.