Acer may be able to ship 10 million tablets in 2013, up more than 400% on year, due to strong demand for entry-level tablets, according to sources from the upstream supply chain.

Acer currently ships 200,000-300,000 Iconia B1-A71 tablets, a 7-inch sub-US$150 entry-level model, every month, and is set to launch an 8-inch model and another 10-inch one for the entry-level segment in the near future, the sources noted.

Of the projected shipments, Android-based models are expected to account for seven million units and Windows-based models for three million units, the sources said.

After Acer releasing its 8- and 10-inch entry-level tablets, the sources expect the company to lower the price for its 7-inch model below US$130 and to price the 8-inch and the 10-inch models below US$150 and US$200, respectively.

Acer's Iconia B1-A71 tablet is manufactured by Compal Electronics and the vendor has outsourced its 8-inch model to Wistron with mass production to start in April, the sources said, adding that Compal and Wistron are currently competiting for the manufacturing orders for the 10-inch model.