IEEE 1394 cables

Output forecast to increase 10 percent this year and 30 percent in 2010 as suppliers prepare for a demand upturn.

China suppliers of IEEE 1394 cables are ramping up production in preparation for a rise in demand, particularly in the video camera, game player, computer peripherals and A/V equipment sectors.

Most companies see output growing 10 percent this year and an additional 30 percent in 2010.

The development of new models based on upgraded standards such as 1394b is contributing to the momentum. Some makers have started releasing units complying with this version.

Al ready one of the largest manufacturing hubs for cables worldwide, China leverages its cost advantage to grab a bigger share of the market. Local companies quote products 5 to 10 percent less than foreign counterparts.

Many complement low prices with improved aftersales services. Several have shortened delivery time to seven days from 15, and a few are even thinking of cutting it to five.

Although IEEE 1394 versions account for only 10 to 30 percent of makers’ total cable output, the line has been growing 15 percent on average in recent years.

Overall production value in 2008 rose 10 percent from 2007 even as sales dipped 10 to 20 percent due to fewer orders resulting from the financial crunch.

Volume reached 150 million units, according to the China Electronic Components Association Electric Connectors & Switches Subassociation.

Suppliers expect demand to start rebounding in coming months. Some companies said foreign trade began picking up in 1H09, with revenue projected to grow by 10 to 15 percent in 2010.

The main overseas destinations are Europe, North America, East Asia and the Middle East. Ningbo Lancom Electronics Co. Ltd, which exports more than 60 percent of its 1394 cables to Europe and the US, said orders declined recently but expects a recovery soon.

To prop up international business, many are exploring new markets such as Russia and South America, where demand for 4-pin 1394a and 9-pin 1394b cables is rising.

Others are temporarily reducing dependence on foreign trade and instead expanding their domestic network.

Cost-management programs are also being implemented to reduce overhead and strengthen operating efficiency amid fluctuating outlay and thinning margins.

Fur ther, a r ising number of manufacturers are keen to offer more competitive prices to improve market position.

IEEE 1394a types drive the industry’s mainstream. Models typically have 4 or 6-pin male connectors and doubleshielded 2x32AWG or 2x22AWG power conductors.

They are generally 1.5, 3 or 5m long but buyers can specify the length. Most come in black, although other colors are available.

Some makers, including Dongguan Liansi Electronic Co. Ltd, have expanded into high-end 1394b cables with 9-pin male connectors capable of delivering up to 800Mbps data rate to broaden selections.

The supplier’s monthly capacity is about 100,000 units, which it plans to raise to 120,000 next year.

IEEE 1394 cables from China are generally designed for consumer electronics such as LCD TVs, video cameras and game players. Some companies target the computer, military, automotive, instrumentation, and industrial still and video camera segments.

To match portable devices whose adoption has been broadening substantially in recent years, many have been developing cables with four pins.

Prices took a dive in 1H09, with some manufacturers adjusting by as much as 30 percent.

Quotes currently range from $0.42 to $1.14. Customized high-end models start at $1.42.

Makers expect prices to stabilize in 2010 after dipping another 5 percent before this year ends.

USB 2.0 cables pose the strongest threat to IEEE 1394 models. The former can realize almost the same transmission speed of 1394a, and the upgraded version has a data rate comparable to that of 1394b.

The advent of USB 3.0 takes the speed rate several notches higher at 4.8Gbps. It also offers better energy and cost savings than earlier standards.

Industry supporters, therefore, expect USB cables to be widely adopted in computers and peripherals, and portable electronics such as MP3/MP4 players and digital cameras. Mobile phones are regarded as an area of growth.

Nevertheless, IEEE 1394 cables, mostly used in A/V equipment, are poised for continuous growth. The update announced by the IEEE 1394 Trade Association, known as S3200 and based on 1394b, supports a 3.2Gbps data rate and uses the same physical connectors, arbitration and protocols.

Although it still trails USB 3.0 in terms of transmission speed, its peerto-peer characteristic renders it less CPU-intensive. Consequently, S3200 promises more power at 8 to 40V voltage and maximum 5A current over a single cable. The operating range is 100m.

In the 1394b cable sector, meanwhile, new players are expected to join in coming months. This will expand the supplier base and subsequently boost output.

Industry watchers are also closely monitoring developments on the 1394c and wireless IEEE 1394 fronts.

Both standards are still in the earlydevelopment stage, with neither chipset nor finished products available to date.

Local makers, nevertheless, said they will adopt the technologies once requisite components are released and demand picks up.

About 1,000 suppliers in mainland China offer IEEE 1394 cables.

More than 80 percent of them are locally owned, and the rest received investment from foreign enterprises, mostly Taiwan and Hong Kong.

The latter type of company typically produces IEEE 1394a and 1394b models in-house.

Their monthly capacity exceeds 50,000 units, with some reaching 100,000.

Among local makers, the majority of which are small and midsize, the volume is lower than 50,000 per month.

Workshop-type operations can turn out 10,000 cables monthly. Many currently use only 60 percent of capacity.

Irrespective of size and capacity, suppliers offer a range of cable types, including HDMI and USB variants.

More than half make the connectors for their cables or sell them to other manufacturers. Using in-housedeveloped components allows these companies to ensure stable quality and performance.

In a move to upgrade production processes, some plan to procure new equipment, including testing machines, in coming months.

Most materials are sourced locally, although some purchase from Hong Kong or Taiwan.

Makers expect costs to stabilize in months ahead and toward this end are entering into long-term partnerships with their providers. This strategy enables them to better control component supply and outlay, and consequently lower prices.