1. Over reliance on existing retail distribution
2. Sub par hardware
3. Little to no marketing effort
Companies that do not actively court the media or stage events are often the ones that no one recognizes, and as a result fade into obscurity. They don’t need to stage Apple or even Amazon caliber events, but having a product launch in New York or San Francisco would attract local and online media. A very basic invite just needs to be sent out and people will come for a scoop. None of these failed companies ever considered this, even though they are based in or have satellite offices in the USA. If you aren’t sending review units out and getting people (other than yourselves) hyping the product, you will go out of business. If you don’t court the media and build relations with the websites everyone reads, you will go out of business. If you continue to release sub-par Android tablets with single or dual-cores, you will go out of business. If you rely on your established retail chain to do the marketing and dirty work of promotion for you, you will trudge on for the next two years and then go out of business.
The points of over reliance on existing retail distribution channel and little to no marketing effort are related, of course. I think these companies are simply riding the wave, so to speak. They are churning new tablet models and put them on the market with no thought of the future. They are not here to stay. A kind of hit and run tactics, considering the tablet trend that is happening right now. The tablet trend, as with any other trend will eventually pass and leave only the strong to survive.
Google saw this coming, and decided to out its own Android tablet version, the Nexus 7 and Nexus 10. With great features and low enough price to hit those cheap chinese tablets real hard.
However, despite Google's effort, I still see questions on Yahoo Answer that acknowledge that Google Nexus 7 is the minimum passable tablet that is both cheap and good, but still wants to find a cheaper tablet.
I suspect this will remain for quite some time before it goes away. In the end, like all market, the strong will survive and the weak will die. However, the casualties will be high on this one, especially with the end user, receiving a lot of hardware that are simply not worthy of its price tag.
My advice to those just seeking a new tablet, be wise, find the best price performance tablet, do not buy cheap tablet, buy cheap and good tablet PC.