Although 2011 has been deemed the "Year of the Tablet" by many, the consumer craze over the new device hasn't contributed toward a positive bottom line for the majority of traditional PC manufacturers other than, of course, Apple (News - Alert). While seemingly every technology company on the planet has launched or plans to launch a tablet device, it has become clear the market will only be big enough to support a handful of players.

So what will be the differentiating factor? The ability to subsidize tablets well below competitor pricing through the sale of online content, at least according to a new DigiTimes report.

Upstream supply chain sources told the media outlet that traditional PC makers like Acer (News - Alert), Asustek and Dell will eventually be forced out of the tablet market not because of their devices themselves, but rather due to their inability to offer troves of content.

Rivals like Apple, Barnes & Noble and Amazon can undercut other tablet manufacturers on price because they can make the money back through the sale of apps, e-books and other online content – a strategy that hardware specialists can't employ.

The unnamed sources pointed toward the $199 Kindle Fire and the upcoming $99 Nook Simple Touch, which are said to be priced lower than they actually cost the companies to manufacture. The sources deem that Apple will soon be forced to follow suit, essentially eliminating other traditional hardware manufacturers from competition. 

Even more amazing, they told DigiTimes that they feel tablets will eventually be offered for free. While the overall theory holds weight, it would be hard to believe that Apple would ever hand out an iPad 5 to every person that walked in the door, no matter how much the company makes from the App Store.

Either way, the tablet craze has led to many more failures than successes. Hewlett-Packard's (News - Alert) TouchPad tablet was a complete flop (until the company knocked $500 off the price just to get rid of them) while Research in Motion's (News - Alert) PlayBook hasn't fared any better. Chances are good we will see many device manufacturers bow out of the tablet game in the near future.

Apple is still king so far, but Barnes & Noble and Amazon are expected to make some serious noise with their own offerings.

Beecher Tuttle is a TMCnet contributor. He has extensive experience writing and editing for print publications and online news websites. He has specialized in a variety of industries, including health care technology, politics and education. To read more of his articles, please visit his columnist page.

Edited by Rich Steeves