iPod accessories

	Model SB1010 from Zhongshan K-mate is a portable speaker with charger, compatible with most iPhone and iPod models.

Dynamic product development drives the line's growth. Aspect design, ease of use and portability define new trend.

Piggybacking on the robust iPod market, production of iPod accessories in China is steadily rising. The continued drop in prices and dynamic product development further drives growth. As the industry expands and competition tightens, however, suppliers of low-end accessories have started to leave the line to pursue new products. Several makers shifted to MP3/MP4 player accessories and other emerging consumer electronic products such as Internet radios. In the last three years, an increasing number of suppliers began offering iPod accessories for car and travel use.

The industry is estimated to have more than 1,000 makers. The majority produces docking stations, earphones, battery chargers and cable assemblies. Suppliers of nonelectronic iPod accessories provide cases, skins and pouches. Some also offer MP3/MP4 players and accessories, digital photo frames, wireless headphones, USB flash drives and USB extension cables.

Most suppliers have their own factories, with varying manufacturing capability. Driven by a largely OEM/ODM client base overseas, the bulk of output is exported to the US and Europe.

Accessories from China support multiple functions, ergonomic designs and user-friendly features. This year, the product development agenda is targeted at improving aspect design, ease of use and portability. To widen selection and stimulate sales, makers underscore aesthetics in new releases.

	The CL-P227 from Shenzhen Cailiang is equipped with an iPod universal dock, a remote control and a Maxxbass bass booster.

The development trend in China’s iPod accessories industry is expected to continue, albeit at a slower pace. Makers already noted a slowdown over the last six months of 2008. Among the factors of this deceleration are a weakening global economy, rising costs, intensifying competition, currency appreciation and IPR issues.

Volume orders from overseas markets have been decreasing due to the global economic crisis, with some makers reporting a more than 30 percent drop in exports. Those shipping to the US and Europe are especially affected.

To cope, many suppliers are exploring emerging markets in Asia, the Middle East and Eastern Europe, aside from efforts toward expansion in the US and Europe. Makers are also actively attending international trade shows, including the China Sourcing Fairs, Consumer Electronics Show, IFA Audio Video, Hong Kong Electronics Fair and CeBIT to seek new buyers worldwide.

With the fluctuating exchange rate, suppliers allow a shorter validity period on the quotes of products for export to the US. If the rate of the yuan against the US dollar changes rapidly during the period, some makers will select the euro or other relatively stable currency in non-US markets.

Furthermore, many companies are emphasizing cost reductions while pursuing product quality upgrades. To improve competitiveness, others are expanding capacity and shortening product development turnaround time.

Several makers also started acquiring IPR licenses for their products to avoid piracy in aspect design. For new products, they are signing exclusive distributorship and mutual nondisclosure agreements with OEM/ODM customers.

According to makers, not all iPod accessories require a license. Acquiring the royalty from Apple usually adds $4 to the product quote. Therefore, some suppliers negotiate with customers on the additional cost. Makers working for OEM and ODM buyers offer their products at quotes excluding fees for the Apple royalty. Suppliers charge an extra $3 for models with power adapters that meet CE, UL and RoHS standards.

Currently, prices for low-end models are more sensitive to changing material costs.

	Ocvaco's EP817 iPod earphone series has 5mW maximum input power and 9mm drivers.

A growing supply of iPod accessories supports various audio and video formats, and works with almost all versions of the iPod. Product development is geared toward improving quality and compatibility.

The products are equipped with more A/V I/O and card slots. They read various A/V formats, including RM/RMVB, AVI, MPG, MPEG-1/2/4, DivX, Xvid, MP3, WMA, AAC and JPEG.

New portable speakers and docking stations work with most iPod models, including iPod photo, iPod nano, iPod classic, iPod touch and the iPhone. The models come with different memory cards, a high-speed USB 2.0 port and a 4-in-1 card slot (SD/MMC/MS/xD).

The products support video playback, FM radios, wireless controls and digital photo frames. Of these features, makers see potential in video playback as an upcoming trend in iPod speakers and docking stations. Models with such features are also known in the domestic market as iPod docking A/V centers or iPod portable cinemas.

Emerging models integrate iPod docking and multimedia players. These not only can play multiple audio and video files from iPods and iPhones, but can also directly play any A/V file from an external USB and SD card slot. Video-out resolution can go as high as 720p. More makers are expected to launch these types in 2009.

Improvement of the audio quality is one of the top priorities for many suppliers. Quality, according to makers, is achieved in the raw speakers used, circuit design and product structure. Companies are developing models with more than two speakers and which are designed with SRS 3D surround sound allowing multiple audio effects. New releases generally have smooth, stereo and high-definition tones. The models emphasize high-definition performance not only in middle and high pitch but also in low pitch.

Although suppliers have different product development priorities, they agree that originality and outstanding aspect design are important selling points for any iPod accessories. Therefore, makers are taking necessary steps to protect new designs against copying and piracy from competitors.

Multiple functions, high compatibility and high-quality sound are emphasized in portable speakers and iPod docking stations.

Zhongshan K-mate General Electronics Co. Ltd’s R&D team is working on improving the sound quality and design novelty of its products. The company currently offers the SB1010 portable iPod cinema, which has a 90-degree design for video watching and a portable cinema function. Although originally designed for use with the iPhone, the model also suits iPhone 3G, iPod touch and iPod nano.

Released earlier this year, the IDK-89 iPod docking A/V center from Sichuan Jiuzhou Electric Group Co. Ltd supports multiple video format playback through USB memory and an SD card. The model features up to 720p high-definition resolution video-out and can directly play music and high-definition movies with RM/RMVB, AVI, MPEG and DivX without conversion. It is equipped with a high-speed USB 2.0 port and a 4-in-1 card slot (SD/MMC/MD/xD). The product supports SRS 3D surround sound, multilingual OSD on TV or monitor, NTSC/PAL compatibility and a full-function remote control.

The company is currently focusing on developing multifunction models. Upcoming releases from Sichuan Jiuzhou will support multiple video playback and play A/V files directly from USB and SD cards. The supplier also plans to release customized models.

The WS-iPD-002 docking station from Weisung Technology Co. Ltd has a digital photo frame function. The model features dual screens for TFT (48x36mm) and LCD (48x18.5mm). It supports JPEG, MPEG-1/2/4, MP3 and WMA. The product has a built-in PLL AM/FM tuner with 20-memory FM and 10-memory AM stations. It supports iPod charging and video-out. The power output is 2x12W rms with frequency response ranging from 20Hz to 20kHz.

Shenzhen Cailiang Electronics Co. Ltd has launched the CL-P227 iPod docking speaker, which comes in hard cover case and MFI versions. The unit is equipped with an iPod universal dock and has remote control, a storage compartment for cable accessories, a built-in rechargeable NiMH battery and a Maxxbass bass booster.

This year, the company targets launching models in new aspect designs.

Improved audio performance, advanced noise cancellation, comfort wear and portability are highlighted in new releases of iPod earphones. Zhongshan K-mate’s iBud-106 stereo earphones adopt a retractable-wire design with an extended cable length of 85cm. The model can be used on any media player with a 3.5mm jack. It features high-quality stereo performance with a receiving sensitivity of 113±3dB.

Some makers adopt high-quality audio transfer wire, full metal aspect and aluminum voice coil. They also incorporate the latest audio control and noise cancellation technologies.

Ocvaco Electronic Ltd, for example, has released headphones with active noise control or ANC, which reduces stationary and low-frequency noise signals. The EP817 iPod earphone series has a maximum input power of 5mW and 9mm drivers. The series is a representative model for the company’s high performance-to-price ratio products.

A few suppliers have launched models with various aspect designs. They use soft sponge as earplug material. For a modern aesthetic style, bright colors are the trend, although black and white are considered classic. The earphone wire can also be extended up to 1.2m.

Prices of iPod accessories are influenced by the value-added functions, component and material used, aspect design, other bundled accessories, multimedia interface compatibility, audio performance, and design license. Quotes also depend on order quantity and export markets. In general, suppliers require a minimum quantity of 500 to 1,000 units for speakers and docking stations. Makers of earphones, for example, require a 3,000-unit MOQ.

Earphones are priced according to the material, quality of wire used and speaker units. A unit with a full metal aspect and high-quality audio performance lists at $6. Earphones that support ANC are $15.

Speakers, docking stations and related A/V center products range from $10 to $60, depending on the function, built-in memory capacity, multimedia interface compatibility, aspect design, speaker unit material and audio performance.

Guangdong is mainland China’s largest production center of iPod accessories. The province is home to nearly 700 suppliers, including a number of Hong Kong-, Taiwan- and foreign-invested companies. The cities of Shenzhen, Huizhou, Dongguan and Zhongshan are the key manufacturing bases. Other makers can be found in Jiangsu and Zhejiang provinces.

Suppliers leverage low-cost production and component supply access in Guangdong. With Shenzhen being a major sourcing hub for MP3 and MP4 players, iPod accessory makers can easily subcontract plastic-injection molding, mold making and SMT to EMS companies in the area.

Makers can also take advantage of the mature supply chain for speaker components, LEDs, LCD panels, buttons, connectors and cable assemblies. Moreover, hundreds of the major MCU IC, A/V IC, flash memory chip and LCD panel suppliers have set up branch offices there. Makers of iPod accessories enjoy a wide selection of component providers and can also get speedy and professional technology support.