MP3 player chargers

	FM transmitters from mainland China's Jenny Technology use private molds. The company has applied for design patents.

Portable speakers, earphones and FM transmitters dominate output. Makers target to capture in-car electronics segment.

China’s MP3 and MP4 accessory industry has experienced considerable growth in the past five years, driven primarily by developments in the portable media player (PMP) sector. The supplier base has expanded to more than 1,000 makers offering a wide variety of MP3 and MP4 accessories, which include portable speakers, FM transmitters, earphones, USB connectors, cables and assemblies, and chargers.

China suppliers are confident of continued growth despite gloomy economic forecasts. Some companies have reported more than 30 percent decline in sales in 2008 as a result of the yuan appreciation and lower order volumes from overseas buyers, especially from those based in North America and Western Europe. The anticipated decline in consumer spending in 2009 is forecast to further depress sales in the months ahead.

Strong demand, particularly from the in-car electronics sector, will, however, keep the line afloat, makers say. Rising demand for car FM transmitters, in particular, will boost production of this accessory type. More China makers are expanding their product range to include not only traditional MP3 and MP4 accessories, but models compatible with in-car electronic devices as well.

Suppliers are concentrating more on portable speakers, FM transmitters and earphones. Products for these three categories cover the entire spectrum, with low-end, midrange and high-end classifications dependent on materials used, value-added features, design, multimedia interface compatibility and audio quality. Product development trends in all three categories emphasize better audio quality and improved designs. Makers are also increasing product compatibility with more audio and memory card formats.

In terms of overseas sales, many companies are exploring new markets in Asia, the Middle East and Eastern Europe to offset decreased orders from other major markets. Some companies are expanding their domestic market while maintaining their overseas business. To minimize the negative impact associated with currency conversion, some makers have adopted realtime settlements for US dollar-denominated transactions. Other suppliers have switched to other currencies, such as yuan or euro, instead of pegging their prices to the US dollar.

Enhanced sound quality tops the product development agenda of portable speaker suppliers in China. Makers, which forecast continued growth for the line on the back of strong iPod sales, are exploring new materials and designs to achieve high-quality audio performance. Some China suppliers have adopted rubber wood material for the speaker units.

Makers are also concentrating on adding value through additional features and enhanced compatibility with other products. More new models can work with more memory card formats. Many new releases have LCD screens, FM radios, rechargeable Li-ion batteries and built-in memory. Some makers, such as Natural Sound Enterprise Co. Ltd, are planning to launch portable speakers with video playback support. The company offers a portable speaker, the MS-1000, with an OLED display and 128MB to 4GB built-in memory.

A few suppliers, including Actsun International Ltd, are moving toward slimmer units. Actsun’s MD-A8 portable speaker weighs only 39g and measures 19x26x30mm. The streamlined unit supports 5hr continuous play and 1.5W speaker output.

Portable speakers targeted at the low-end segment generally have basic audio features. Midrange and high-end units deliver stereo sound and integrate MMC/SD card readers and USB ports. Some high-end portable speakers from China also have built-in video player functions and support AVI, MOV and AMV multimedia formats.

Price determinants in this line include memory capacity, multimedia interface compatibility, aspect design, speaker unit material and audio performance. The average price range is $1 to $30. An iPod interface can be incorporated for an additional $4. Compliance with RoHS adds 10 percent to the regular price.

Improved audio performance is also emphasized in China’s MP3 and MP4 earphones. Makers generally adopt high-quality wire, aluminum voice coil and full metal housing to elevate sound quality. Some suppliers have also adopted noise-canceling technology for their MP3 and MP4 earphones.

Aside from improving sound quality, China’s MP3 and MP4 earphone suppliers are also innovating on the product design. Some makers are adopting soft sponge as the earplug material for a more comfortable wear. Makers are also releasing more models with retractable design that prevents wires from twisting.

Prices of MP3 and MP4 player earphones from China generally range from less than $1 to $5. The material and quality of the wire, speaker units and aspect material help determine the price. An earphone quoted at $3.80, for example, usually has a speaker unit diameter of 15mm. The SE098 MP3/MP4 earphones from Great China Electronic Co. Ltd, for instance, adopts 15mm drivers with 32Ω impedance, 10mW rated power and 115dB/1mW sensitivity. The unit uses high-quality wire material, metal housing and aluminum voice coil.

In the growing FM transmitter market segment, makers’ focus is on improved compatibility with memory cards and audio formats on top of value-added features and innovative designs. New FM transmitters from China generally have MMC/SD card readers, USB ports, built-in screens, digital PLL sound coding technology, built-in flash memory and Bluetooth. In stride with trends emphasizing ease of use, a few makers have developed units with rotary joint design for easy adjustment.

FM transmitter specialist Jenny (China) Technology Co. Ltd uses private molds to create unique designs for its products. It has applied for design patents for its FM transmitters.

Prices of FM transmitters generally range from $2 to $30. Models in the low-end segment usually have basic audio features, USB ports, remote control and up to 15 FM channels. These products list from $2 to $5.

Midrange and high-end FM transmitters feature stereo sound, LCD screens, USB ports and MMC/SD card readers. Many models in these categories have up to 4GB built-in storage capacity. Makers offering midrange and high-end FM transmitters typically incorporate the same features and functions, although suppliers of high-end models add Bluetooth to their products.

Midrange models are priced from $5 to $15. High-end FM transmitters are available for more than $15.

	The 3601067 from Hong Kong's Connectland is a multifunction strap with an integrated USB charger and microSD card reader.

China makers generally conduct IQC, IPQC and FQC. The procedures involve incoming material inspection, in-process quality control, function and performance testing, and checking before and after packaging as well as before delivery.

Similar with other A/V devices and accessories, audio performance test procedures are critical in MP3 and MP4 accessories. Thus, many China suppliers use imported testers in their QC and R&D departments to ensure high product quality. Natural Sound, for instance, has purchased a data acquisition and analysis system equipment from Germany. The company also has hi-fi screening rooms and aging and compression resistance testers.

Aside from audio performance tests, MP3 and MP4 accessories from China also undergo attrition endurance, drop, bending, vibration, plug-in, and high- and low-temperature tests. Plug-in tests are done for 10,000 times.

Some makers conduct temperature tests from -20° to 85° Celsius. The test equipment used includes audio generators, oscilloscopes, spectrum analyzers and signal generators.

	From mainland China, Actsun's MD-A8 portable speaker supports 5hr continuous playback and 1.5W output.

The Pearl River Delta is the largest production center for MP3 and MP4 accessories in China. More than 70 percent of local suppliers can be found in the delta, in the Guangdong cities of Shenzhen, Guangzhou, Dongguan and Zhongshan in particular. Outside of the delta, a good number of makers are based in the provinces of Jiangsu and Zhejiang.

Many China suppliers of MP3 and MP4 accessories are attracted to the Pearl River Delta by the large number of MP3 and MP4 player suppliers based in the area, providing accessory suppliers with a ready market for their products. The large concentration of makers of other portable A/V devices in the delta also affords makers exposure to the latest trends, which they can use in developing new product concepts or designs.

The delta’s mature supply chain provides makers with easy access to raw materials and key components for their products. China suppliers based in the Pearl River Delta can also easily expand their manufacturing capacity or outsourcing with the area’s rich pool of service providers for plastic injection, mold making and SMT. The region also has an abundant supply of skilled workers and R&D engineers. The convenient transportation system, which includes ports, highways, and air and railway transport networks, complements the established support industry.

Despite these many advantages offered by the Pearl River Delta, more companies are moving to inland cities and provinces. The main reasons for the exodus are the lower wages and steady human resource in inland locations. Suppliers forecast more companies will move to inland production hubs as wages in Guangdong continue to rise and labor issues persist.

Shenzhen Jinma Communication Co. Ltd, for instance, has established a manufacturing facility in Ganzhou city of Jiangxi province. The company will keep its Shenzhen factory, but mainly for the production of high-end earphones. The new Ganzhou facility will handle production of earphones with basic functions.

Unfazed by the anticipated market slowdown in 2009, makers in Hong Kong do not plan to stop product development, as doing so will only cause some customers to lose interest in the line. Some suppliers continue to churn out new designs. Other more cost-conscious companies upgrade existing models.

Suppliers’ product development efforts are generally centered on earphones, which account for the bulk of the region’s output. Balanced armature models that produce sound across the whole frequency spectrum and noise-canceling models are the best-selling products in the category. Cobalt Industrial Co. Ltd’s TEX-31 high-definition balanced armature earphones feature in-ear monitors and fully aluminum alloy body. The model has 107dB sensitivity, 32Ω impedance at 500Hz and 20Hz to 20kHz frequency response.

For micro driver models, makers plan to increase sensitivity levels to 106dB using driver units miniaturized down to 9mm. In terms of design, some in-ear models from Hong Kong come in a professional over-the-ear DJ look.

Makers in Hong Kong also offer MP3 and MP4 player earphones specially designed for women. Aside from Swarovski-studded models, also available are units that come in attractive colors and shapes finished with ceramic coating.

Suppliers are also expanding their earphone cable management solutions. Current supply yields trendy wrist straps; carabiners and retractable cables for sporty users; and 4-in-1 sets consisting of earphones, cable organizer, volume control and stylus for users in the business segment. Silicone and plastic winders and storage cases are also available.

Suppliers of portable speakers place more emphasis on external design innovations than on audio performance enhancement. This is spawning more models in colorful designs and novelty shapes. Makers also provide models that have space for logo imprint to lure buyers of premiums and promotional items. Most portable speakers from Hong Kong are mono and stereo versions, with some high-end models delivering 2.1ch output.

Some Hong Kong suppliers have also released A/V cables for MP4 players that integrate A/V output. Unlike regular A/V cables, versions for MP4 players are normally shorter and thinner, with some bundling a cable organizer. One end is typically an A/V out connector, while the other end comprises two or three RCA plugs.

The 3601067 from Connectland Technology Ltd is a compact USB charger and microSD card reader built into a hand strap. It comes with a 5-pin mini USB connector and is compatible with MP3 and MP4 players, mobile phones and other portable electronic devices.