Guangdong rising hub for Android phones

Android phone from KVD

Makers in the province are benefiting from its strategic location and rich supply chain.

Guangdong province’s established support industry for mobile phone production is bolstering the manufacture of Android handsets in the area. Still the country’s largest sourcing center for cell phones, the province accounts for more than 70 percent of the total output and exports for the line. In 2011, shipments surpassed 638 million units, a 23 percent increase YoY.

Taking advantage of the rich upstream network for raw materials and components, Android handset makers in the coastal hub can easily obtain chipsets, modules, sensors, panels and even housings from local and foreign partners. The proximity of input providers enables companies to reduce transportation and storage costs.

Technical support is likewise readily available. Key chipset suppliers such as Broadcom, MediaTek, Qualcomm and Fuzhou Rockchip have R&D centers in Guangdong. Phone manufacturers can also tap the area’s mature EMS industry to outsource solutions and subcontract plastic injection, SMT and mold tooling.

Guangdong gathers 80 percent of China’s mobile phone maker pool, with more than 500 focusing on Android variants. This handset type constitutes 80 percent of interviewed companies’ smartphone yield. Gartner estimates units running on the Google-based OS will take up 50 percent of global sales this year. The remainder is split between Symbian and BlackBerry phones.

Shenzhen remains Guangdong’s leading production center. The city accounts for 80 percent of the province’s exports. Large enterprises such as Huawei, Yulong and ZTE are based there. Factories are also found in Dongguan, Guangzhou and Huizhou.

China’s mobile phone shipments rose 16 percent to 875 million in 2011. The upswing reflects strong global exports, which surpassed 1.6 billion units during the same period to represent a 14 percent YoY increase, according to Strategy Analytics. Smartphone deliveries hit 420 million units or one-fourth of the total, said IMS Research.

Despite the category’s rapid growth, manufacturers are experiencing falling margins due to tightening competition. To grab more orders, many were forced to lower quotes by 5 to 10 percent in recent months. The downward trend is forecast to continue as makers strive to stay afloat amid an expanding industry.

Steep labor outlay is likewise eating into companies’ profits. Manpower-related expenses are 15 to 20 percent higher in Guangdong compared with inland provinces. Nevertheless, many suppliers still prefer to carry out manufacture there. Some, in fact, have raised wages by 10 to 20 percent to retain workers.

Product homogeneity is another challenge. Android phones from Guangdong basically incorporate the same solutions and designs. Some makers are using in-house molds and bundling accessories to diversify selections.

Diverse Android phone selection

Guangdong suppliers offer high-performance Android handsets at competitive prices ranging from $80 to $150.

For entry-level units, makers adopt Broadcom’s BCM2157 chipset or the MSM7225 from Qualcomm. Midrange types may be based on the MSM7227 from the latter or MediaTek’s MT6573. Upscale varieties employ the MT6575 or MSM8255.

Most releases support dual-SIM and -standby. In terms of display, mainstream releases have 3.5 to 4in displays. Capacitive touchscreen is prevalent, with 320x480, 480x800 or 960x540-pixel resolution.

Manufacturers typically incorporate GPS, Wi-Fi, Bluetooth and analog TV. Many units also come with front and rear cameras. The memory is typically 4GB.

The majority of models run on Android 2.2 or 2.3 OS, although some high-end variants support the latest specification, 4.0. More companies will roll out such types in the months ahead amid growing demand.

To keep up with the dynamic line, Guangdong makers continue to upgrade hardware performance and features. Suppliers enhance CPU frequency to enable more applications and faster operating speed. Some enterprises such as Huawei and ZTE are launching dual- and quad-core models.

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SUPPLIER PROFILES

KVD International Group Ltd
Model: A22
MOQ: 100 units
Description: Arm Cortex-A9 1GHz processor, MediaTek MT6575 chipset; 850, 900, 1,800, 1,900MHz GSM, 2,100MHz W-CDMA; 4.7in capacitive touchscreen, 960x540 pixels; 4GB ROM, 512MB RAM, up to 32GB TransFlash memory; 8MP auto-focus camera, G-sensor, proximity and light sensors, compass; 802.11b/g; SPB Shell 3D; Android 4.0 OS

Shenzhen Diadem Technology Co. Ltd
Model: MG988
MOQ: 1,000 units
Delivery: 20 days
Description: Broadcom BCM2157 chipset, 500MHz; 850, 900, 1,800, 1,900MHz GSM, 900, 2,100MHz UMTS; 2.8in capacitive touchscreen, HVGA; 256MB ROM, 512MB RAM, 32GB TransFlash memory; 3.2MP rear camera, FM radio, G-sensor, accelerator sensor, GPS/A-GPS, GPRS; Bluetooth, Wi-Fi; Java; Android 2.2 OS; 1,150mAh Li-ion battery; 108.2x57.6x13.8mm

Shenzhen Huihua Exploit Technology Co. Ltd
Model: B2000+
MOQ: 50 units
Description: Dual-SIM, -standby; MediaTek MT6575 chipset; 850, 900, 1,800, 1,900MHz GSM, 850, 2,100MHz W-CDMA; 4in capacitive touchscreen, 480x800 pixels; 4GB memory, optional TransFlash card; 300,000-pixel front, 3MP rear cameras, FM radio, GPS/A-GPS, WAP 2.0; Bluetooth 2.0; MP3, MPEG-4, AVI, FLV, 3GP; black, white, purple; 112x64x11mm

Shenzhen Tenex Communication Technology Co. Ltd
Model: HX7
MOQ: 1,000 units
Delivery: 25 days
Description: Dual-SIM, -standby; MediaTek MT6573 or MT6575 chipset; 850, 900, 1,800, 1,900, 2,100MHz GSM, GPRS, W-CDMA; 4.3in capacitive touchscreen, 480x800 pixels; 4GB memory, up to 32GB microSD card; dual cameras, G-sensor, proximity sensor, GPS; Bluetooth 2.1+EDR, 802.11b/g; Android 2.3 OS; Micro-USB port, 3.5mm audio jack; >120hr standby, >5hr talk time; 1,500mAh Li-ion battery; 123.6x68x11.8mm

U-Force Holdings Ltd
Model: U5
MOQ: 1,000 units
Delivery: 20 days
Description: Dual-SIM, -standby; dual-core processor 1GHz; MediaTek MT6575 chipset; 5in capacitive touchscreen, 960x540 pixels; 4GB ROM, 512MB RAM; 300,000-pixel front, 5MP rear cameras, light sensor, digital compass; Android 4.0 OS