Tablet makers venture into drone production to boost sales. (Photo : Reuters)
Dropping sales in the tablet market worldwide led many manufacturers in China to diversify their products by expanding offerings to include smartphones, wearable devices and vehicle navigation systems, specifically unmanned aerial verhicles (UAVs) or drones, during the first half of 2015, according to China Business News.
U.S.-based market research company International Data Corp. released data on international tablet PC shipments showing a 7-percent decline year-on-year or 447 million units in this year's second quarter.
"The downward trend will continue," said Gu Yong, Ramos Digital Technology marketing director. The Shenzhen-based tablet supplier released only three to four new tablet PC brands in the first half of the year, which is only 50 percent of the corresponding numbers of the previous years, Gu told the paper.
Even low-end brands that cost 399 yuan ($65) do not gain much attention, he added.
"Normally, tablets have a usage duration of two to three years, longer than that of smartphones, and therefore record a slower pace of replacement. This will make global tablet market continue to spiral downwards," Gu said.
Jistesh Ubrani, senior analyst of IDC, shared that consumers are now less likely to purchase new models due to the heightened competition against large-screen smartphones, and the fact that users can upgrade their old devices with the latest systems.
A number of other tablet manufacturers have gone into development and production of wearables, car navigation systems and drones. Shenzhen drone suppliers have experienced a rise in market share, with 99.9 percent of China's drone exports occurring in the five months of the year, according to customs statistics.
Shenzhen shipped overseas 160,000 drone units, amounting to 750 million yuan ($121 million) during the same period. This indicated a 69-fold volume increase and a 55-fold value surge.
In April, over 10 former tablet manufacturers showed off their new drones at the 2015 Global Sources Electronics Show held in Hong Kong. Shenzhen South Digital, which used to produce smartwatches and tablets, also participated in the trade show.
"It will take three to six months to complete the design of a drone model, and many tablet makers have contacted us directly for providing them with prototypes of drones," said DAGU Hi-Tech Electronic's senior executive. DAGU is a Shenzhen-based designer of robots and drones.
Drones need to pass through strict quality control measures before they are released in the market, the executive added. It involves precision matching among digital flight control systems, electronic speed control, electrical engineering systems, and balance and stability testing.
The executive noted that "this, coupled with core chips and aerodynamics expertise, is far beyond the technical competence of existing tablet makers in China."
