Taiwan-based notebook maker Quanta Computer has recently received OEM orders from Amazon for its reported tablet PC, according to sources from upstream component makers. The device's monthly orders during the peak season are expected to reach about 700,000-800,000 units.

Quanta is expected to start shipping as soon as the second half of 2011 with the orders to contribute more than NT$100 billion (US$3.5 billion) to Quanta's annual revenues in 2011, the sources noted. In response to the report, Quanta declined to comment on its clients.

In addition to Amazon, Quanta is currently also the tablet PC OEM partner of RIM and Sony, while the company has also been aggressive in contact with Lenovo in hoping to land orders from the company for its second-generation LePad.


The sources pointed out that Amazon's Kindle still has strong sales, but the e-book reader is currently still unable to successfully cut into the markets outside of North America and Europe; therefore, Amazon internally plans to reduce Kindle's market price to attract consumer demand from the education and consumer market, while will push tablet PC using its advantage in software and content resources to challenge iPad2.

The device is expeted to receive support from Taiwan-based electrophoretic display (EPD) maker E Ink Holdings (EIH) for supplying touch panel as well as providing its Fringe Field Switching (FFS) technology. However, EIH declined to comment on the news when asked, saying it does not discuss clients with the media.

EIH has also recently been in contact with a Taiwan-based small- to medium-size panel maker, aiming to obtain capacity to support Quanta, the sources said. Volume production of Amazon's tablet PCs is expected to allow EIH to gain more profit from the patents of its FFS technology.