Laptop batteries

	The CMR3000 from Winkeen Electronics is a Li-ion battery for the Compaq Presario R4025US, R4026EA, R4028EA, R4029EA, R4030EA and R4031EA models.

Dongguan and Shenzhen main production centers; Li-ion batteries lead production and exports

Guangdong province is a major economic and export-oriented manufacturing area in China's southeastern region, being home to three of China's four original economic zones and a major recipient of Taiwan investments. The province accounts for more than 60 percent of China's suppliers of computers and peripherals, a positioning that has enabled it to gain a foothold in the country's laptop battery segment. Rapidly developing infrastructure, established support industries and heavy trade influx from Hong Kong continue to draw local and foreign investors to Guangdong, making it a leading sourcing center for PC peripheral products.

As of H1 2008, there were about 25 suppliers of laptop batteries in Guangdong. Most of these suppliers are located in Dongguan and Shenzhen. Leading players Shenzhen Bak Battery Co. Ltd and PortaPower (HK) Ltd are based in Shenzhen, and Amperex Technology Ltd (ATL) is based in Dongguan.

Suppliers offer Li-ion, Li-polymer and NiMH batteries, with Li-ion leading supply. The majority of makers cater to OEM clients, and some companies also accept ODM projects. Large companies such as PortaPower and ATL export 100 percent of their products. Many other suppliers ship 40 to 60 percent of their laptop batteries overseas.

Most exports ship to Europe, which absorbs about half of Guangdong makers' output. Asia has a 30 percent export share. Other export markets include South America and Africa.

Large-scale companies such as PortaPower and ATL made about 140,000 units a month combined in 2007. Meanwhile, the aggregate monthly output of medium- and small-scale players, which number more than 15 companies reached about 130,000 laptop batteries last year.

Growing interest in China-made laptop batteries in the international market augurs well for many suppliers in Guangdong. The province's makers are becoming increasingly eager to boost their overseas business.

Greenway Technology Co. Ltd has an in-house production capacity of 40,000 laptop batteries a month. In H1 2008, its monthly output volume reached 20,000 units. Last year, the company exported 90 percent of its laptop batteries.

Greenway's 4300sqm factory in Bao'an district in Shenzhen handles protective board insertion, assembly, and aging and performance tests. Production is equally divided into OEM and ODM orders.

Shenzhen Tony Technology Co. Ltd has focused on laptop batteries since its establishment in 2004. It can make 40,000 laptop batteries a month, with actual output averaging at 30,000 units. Fifty percent of its laptop batteries are for OEM clients and 40 percent goes to ODM clients. The rest carries the company's Tony label.

Shenzhen Winkeen Electronics Co. Ltd was established in 1995 and ventured into batteries in 2004 with camera and laptop batteries. Its monthly production of laptop batteries reaches 40,000 units, an 80 percent utilization rate from its capacity of 50,000 units a month. Winkeen Electronics exported nearly 75 percent its laptop batteries in 2007.

Suppliers in Guangdong are optimistic production in H2 2008 will pick up after the drop in output volume in the first half of this year resulting from the shortage in battery cells. Makers said production slipped 40 percent in H1 2008 as companies scrambled for battery cells, whose supply fell after the fire in two large battery cell facilities in September last year and March this year. As a countermeasure, many companies are considering sourcing battery cells from local suppliers. Some suppliers are negotiating with their clients in order to be able to use B-class cells.

Guangdong suppliers offer three types of batteries for use in laptops: Li-ion, Li-polymer and NiMH batteries. Large suppliers mainly offer midrange and high-end models, and medium- and small-scale makers supply models for the entire product spectrum.

All suppliers focus mainly on Li-ion batteries, which currently account for nearly 90 percent of Guangdong's laptop battery output. Makers produce a small percentage of NiMH and Li-polymer batteries. NiMH batteries are projected to stay for the next three years, after which they will start exiting the line due to their relatively large size.

Meanwhile, Li-ion batteries will continue dominating production in Guangdong. In 2007, the market shares of Li-ion batteries, Li-polymer batteries and NiMH batteries were respectively 90 percent, 4 percent and 6 percent.

For Li-ion laptop batteries, suppliers typically use cells featuring 2200mAh, 2400mAh and 2600mAh of the 18650 series. Some manufacturers use 103450 series and 17670 series.

Suppliers estimate that until the end of 2008, 2600mAh cells, 2200mAh cells and 2400mAh cells will account for 25 percent, 45 percent and 30 percent of supply.

Greenway produces only Li-ion laptop batteries. It has released more than 200 models for the low-end, midrange and high-end sectors.

Tony Technology produces mostly Li-ion laptop batteries, which now make up 90 percent of its overall output.

Winkeen Electronics likewise devotes 90 percent of its production to Li-ion models. Eight percent of its laptop batteries are based on NiMH, and the rest are Li-polymer laptop batteries.

Quawin Electronics Co. Ltd started supplying laptop batteries at the end of 2006. It offers mainly midrange and high-end Li-ion models.

Apart from higher capacity, trends are pointing toward thinner and lighter batteries to suit the more compact, thinner models of laptops currently available on the market. Going forward, these developments will pave the way for Li-polymer batteries.

This year, suppliers predict prices of laptop batteries will rise by 7 to 10 percent, despite makers' efforts to keep export quotes stable through increased production.

Most suppliers link the price uptrend to the yuan valuation and shortage in the supply of cells, as well as product approvals and features.

Laptop batteries with new cells are typically priced from $29 to $35 each in the low-end market. Models for the midrange and high-end sectors list from $36 to $50, and more than $50 per unit, respectively.

Models with recycled cells go for $22 to $30 for low-end units, and $30 to $50 each for midrange units. Since sales in the $35 to $45 price segment have been strong, more makers are inclined to concentrate on the midrange sector this year.