Amazon Turns to Taiwanese Manufacturers for Tablet Rollout

Taipei, June 1, 2011 (CENS)--Planning to roll out own-brand tablet PCs in September this year, online store Amazon.com has reportedly contracted Taiwan's manufacturers to supply components and assemble the computing devices.

E-Ink Holdings Corp.'s Hydis Technologies Co., Ltd. will supply the unique Fringe Field Switching (FFS) display technology; TPK Holding Co., Ltd. and HannsTouch Solution Inc. will supply touch panels; and Quanta Computer Inc. will assemble the computers.

Informed sources pointed out that Amazon.com will ship around 800,000 tablets a month as the first step of its plan to snatch up over 20% of global market for non-iPad tablets, which numbers around 15-20 million systems a year.

Industry executives estimated Amazon.com's tablet contracts would bring in Quanta revenue of NT$24-30 billion (US$827.5 million-US$1 billion at US$1: NT$29) and boost its earnings this year alone. They said Amazon.com purposely contracts Quanta instead of Foxconn Electronics Inc. because Apple Inc. has signed up the No.1 contract electronics manufacturer to assemble its iPad and iPhone.

E-Ink wins the contract without much surprise as it is already a contract supplier of electronic papers to Amazon.com.

Both Quanta and E-Ink have declined to comment on the reports.

Industry executives estimated Amazon.com's tablets would be more attractive than Motorola's Xoom and Samsung's Galaxy for their lower prices.