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Cogo Coco Group Inc. (COGO) Announces Rapid Acceleration of Tablet Computer Revenue

Yesterday, Coco Group Inc. announced that the revenue generated by the manufacture of tablet computers is accelerating more quickly than anticipated. This is due to the faster-than-expected growth of China’s tablet computer market, in conjunction with growth of Cogo’s tablet consumer base.

Cogo works as a proxy between Chinese companies, levering business relationships and combining companies’ intellectual property to design products, which Cogo sells to electronics manufacturers. This process allows manufacturers to reduce a product’s time to market, which is becoming a necessity with the rise of tablet popularity. Dealing with over 1,500 manufacturers, Cogo primarily works with telecommunications equipment, digital media and industrial applications, while offering business and engineering services to telcom vendors.

Fueled by the success of the Apple iPad, and the general demand for touchscreen tablets, dozens of Chinese electronics companies have begun to produce tablet devices for Android, Windows, and other operating systems. Cogo provides tablet components such as microcontroller units, memory and wireless access parts, such as 3G or WiFi. The popularity of tablet devices is increasing profits – current average selling prices for tablet-specific components is significantly higher than similar components intended for smartphones.

“I am excited that the market for touch-screen tablets in China has taken off even faster than our optimistic expectations,” commented Jeffrey Kang, CEO of Cogo. “This, combined with the continued growth of our tablet customer base, makes us even more confident about continued strong growth in our digital media segment in 2011. Overall, we continue to see broad-based order strength across all of our end markets and we look forward to another year of strong revenue growth.”

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