Elonex to branch out from tablet stronghold

Tablet contender poised to evolve in the face of growing A-brand pressure, as it moves production back to the UK

Tablet contender Elonex is betting big on the convergence space this year as it moves its manufacturing back to the UK.

The system builder, which currently manufactures its kit in China, scored a £2m government grant in November that it will put towards the construction and operation of a plant in Coventry.

It will continue to source screens from China but will now carry out the rest of the assembly, down to the chip and board level, in Blighty.

Chief executive Nick Smith (pictured) said the plant should be up and running by September. The facility's 400 staff will also sub-contract for third-party manufacturers.

"If you take away the cost of freight and import duty, we can produce in the UK for the same price as Asia, with the added benefits of better finance, improved quality and protection of IP," he said.

Elonex's share of the UK tablet market stood as high as seven per cent in Q4 2010 but Smith admitted it was time to find another golden goose.

"We still shipped 80,000 units in Q4 [2012] but we believe our market share will decrease in tablets as the tier ones buy the market," said Smith. "So we have other products in development: this year will be all about convergence and how you get tablets, phones and TVs working together."

Elonex is also a big player in the LED market, inking a £5m deal with the Super League in December to be the exclusive LED supplier to rugby league's top flight.

Smith argued that Elonex's best-of-British market message would go down well in the current climate.

"This will make us stand out as a brand," he said. "The economy is not fantastic but if we all start buying from local UK companies, it will help us get back on our feet."