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.

  • Deian Stancu

    You know what is the problem with Motorola or HTC or anybody else? They found out that Apple makes a lot of money with Ipad and it costs only 260$ to make. So does the Xoom, it costs about 250-270$ and the retail end user price is 800$. They want to make same profit as Apple. Problem is that Apple did it in many years, brainwashing many people to buy a concept, not a product. Their products are not splendid, but iFans love them, even if there are Motorolas or Asuses or Galaxy Tabs, better hardware, better specs, iFans are used to an operating system that is different and works every time. Besides, being fad gadgets, they love to bragg.

    It’s sad, that brands want to milk customers instead of gaining ground and listening to needs. I think that of all brands, Asus seem to be an “Apple done right”, they only need to listen more to feedbacks, and soon, it will be a mobile giant, like Samsung. Asus has by far, the best Android tablet on the market, if only they manage to supply enough, then will gain more ground and more customers. And their Padfone concept, it’s eye catching, how come Apple wasn’t thinking into merging Iphones and Ipads….