Tablet makers without content may exit


A report from Asia on Thursday says that tablet device makers who don’t have content to sell may follow Hewlett-Packard Co. 's lead and pull out of the market before long.

The report in Digitimes cites unnamed Asian suppliers who said that Acer, Asustek and Dell Inc. are all contemplating phasing out of tablets in 2012.

The problem, according to the report, is that they can't compete on price against Apple Inc. 's (NASDAQ:AAPL) iPad, Inc. 's (NASDAQ:AMZN) Kindle Fire or Barnes & Noble 's Nook Tablet.

That is because those three tablets are tied to companies with big content stores, enabling them to cut prices below what companies that are just making devices can offer.

The $199 Kindle Fire and $249 Nook Tablet are both said to be priced below what they cost to make.

Digitimes' sources even said that it is conceivable that some tablets will eventually be given away for free in order to sell products from these companies' stores.

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