China is a major production hub for computer accessories, offering a range of USB flash drives, memory cards and readers, optical disc drives or ODDs, HDDs, solid state disks or SSDs, and speakers. For USB flash drives alone, the country contributes 80 percent of global supply. Makers estimate their output this year will hit 79 million units.
Strong demand for large-capacity storage devices will boost China’s young portable HDD and SSD sectors. SSDs are the fastest-growing line in the NAND flash market at present.Although the country’s supplier pool for both HDDs and SSDs remains small and will not likely expand significantly in the next few months, companies are confident that rising adoption in the computer and consumer electronics industries will spur production and exports.
China suppliers made 100 million memory cards and 25 million readers last year. The country accounts for 15 percent of the world’s memory card production. Output consists of the SD family, MS, MMC and CF formats. Multifunction readers dominate, as only a few companies offer single-card versions.
Computer speakers from China represent 80 percent of global supply.Makers expect a slight downturn in export sales this year, but remain optimistic that the country will continue to be a major manufacturing hub for this product.
The following are some of the key trends in China’s computer accessories industry:
• Declining NAND flash memory chip costs will spur product development and manufacturing in the USB flash drive and SSD segments.
• There is growing interest in USB 3.0 flash drives, but USB 2.0 is expected to keep its main stream position for the next few years.
• Makers of portable storage devices are matching rising demand for large capacity by introducing models that support up to 1TB memory. Some are expected to release 2 and 4TB versions in coming months.
• Product development in external enclosures revolves around smaller form factors, better heat management and data protection.
• SATA-based, ultra slim and slot loading ODDs lead the selection in China. IDE units are expected to exit the line in the near future.
• The SD series will continue to dominate the memory card sector. Emphasis on smaller types will bolster the output of miniSD, microSD and SDHC versions.
• Suppliers of computer speakers focus on portable designs, better audio quality and value-added features.
• Many companies are leaning toward a price increase despite tight competition. Adjustments will, however, be limited to 10 percent as makers try to remain competitive.
The above is extracted from the Executive Summary of China Sourcing Report: Computer Accessories
To learn more about this report, visit: http://www.chinasourcingreports.com/csr/computer-accessories
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