Other PC vendors are also adapting to the new consumer trend and releasing low-end tablets. In China, Lenovo is the second-largest tablet vendor behind Apple, with a 14 percent share. It reached that position in part by selling 7-inch Android tablets priced as low as $175. U.S.-based Hewlett-Packard last month also unveiled a 7-inch Android tablet, the HP Slate 7, that it will sell for $169.
Analysts expect budget 7-inch Android tablets will become increasingly common in the market, given the declining manufacturing costs to build the devices. Low costs means revenue can be generated from the tablets. But also important is keeping the company brand's relevant among consumers by launching new attractive products, said Gartner's Tracy Tsai.
"Vendors have to adapt to the trend and expand their profile, otherwise they will lose out on the opportunity of where the market is moving," she said.