The upstream tablet supply chain is seeing orders from clients continue to shrink, and shipments for the first quarter are expected to be significantly impacted. In addition to brand vendors such as Samsung Electronics, many China-based white-box players, which partnered with Intel to join the market, have also been adjusting their product lines and business strategies.

Samsung in the past would unveil new tablets in the first half of a year ahead of Apple's launch of next-generation iPads. But the Korea-based vendor has taken a conservative approach in 2016 and has not yet made any aggressive moves for the tablet market, which is relatively affecting its orders to the upstream supply chain.

In contrast, Samsung has turned more aggressive about the notebook market and has started releasing products recently.

With weak shipment performances, China's white-box players have been forced to rely more on price cuts to stimulate demand, condemning the market to serious pricing war. With brand vendors' tablet prices dropping and Intel cancelling subsidies, white-box players have started to halt the development of new Windows-based tablets and look for new business opportunities somewhere else.