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Upbeat projections are boosting product development and turnout. R&D centers on models with fast-charging and intelligent features.
China suppliers of standard battery chargers have a generally positive outlook even with the popularity of solar chargers and the increasing adoption of lithium chemistries in portable consumer electronics.
Solar units do not pose a serious threat but still influence makers’ agenda. Several companies are planning to focus on this line, attracted by its huge growth potential. High manufacturing costs, however, continue to limit production. Also slowing acceptance are low photoelectric transfer efficiency and stability.
Of bigger concern among suppliers is the growing use of lithium batteries in portable electronics. This affects the adoption of NiMH and NiCd types, which are the main applications of standard battery chargers. For example, mobile phones no longer utilize NiMH batteries, whereas in 2007, about 5 percent of handsets were powered by such. The popularity of NiCd versions is likewise decreasing due to environmental concerns. Global demand for this type is expected to decline by at least 15 percent this year, according to IIT.
Despite these challenges, mainland China makers are optimistic the domestic standard battery chargers industry will grow in coming years.
Already accounting for 80 percent of worldwide supply, the mainland’s output share is still expected to increase as many Taiwan and Hong Kong companies leave the line due to low returns.
Production in the mainland is estimated to grow 3 to 10 percent this year after slowing in 2008 because of the global financial crisis. Some manufacturers also expect better export business in coming months as economies in the US and Europe have started to improve. These two areas, together with Southeast Asia and the Middle East, are currently the major overseas destinations of mainlandmade standard battery chargers.
Helping to boost the line is the increasing buyer preference for rechargeable batteries to dry-cell types.
This comes amid the growing number of devices requiring continuous discharge field supply such as electric toys, remote controls, digital cameras and walkie-talkies. Applications also cover wireless phones, power tools, solar lights, small household appliances and notebook PCs.
Optimistic industry projections are encouraging many China makers to continue investing in product development and release new models with value-added features. R&D is geared toward units with fast-charging and intelligent functions that incorporate energy-saving and safety elements.
Quick and smart versions with larger capacity are gaining popularity as traditional variants with small charging current can no longer meet performance requirements. The former type is estimated to account for more than half of China’s total output of standard battery chargers in 1H09. With increasing safety and environmental awareness, companies plan to launch such kinds in bigger volumes in coming years.
Quick units adopt automatic voltage shunt integration technology that can control the charging current and time based on the number of batteries. It also ensures optimal charging efficiency and complete charging. Some models can power up a 2,800mAh battery in just seven hours, while conventional models can finish in about 13 hours.
Smart types can be used with batteries of different capacities and charging status. They are also equipped with activation and car charging features and have an LED or LCD status indicator.
Both quick and intelligent versions have an automatic internal poweroff function. They support singlepoint detection and can power up four batteries at the same time or individually.
Mos t produc t s incorporate overcurrent , over vol t age and overheating protection. A number of suppliers, including Shenzhen LVSUN Electronic Technology Co. Ltd, are now applying for domestic and international patents for their fast-charging and smart models.
R&D also emphasizes enhanced cosmetic design and optimized packages. Makers are launching units in various colors and shapes, and versions that come with multiple plugs for home and car use. Portable battery chargers are available as well.
In general, midsize and large companies allot about 5 percent of total annual sales to product development.
Small players have limited research capability and typically follow customers’ requirements in terms of design.
Standard battery chargers from China include home-use and in-car versions. The input voltages are 100 to 240VAC or 90 to 250VAC at 50/60Hz, and 12VDC. The output is 1.2 or 9VDC. The output current can be buyer-specified. Models come with two, four or eight channels.
Prices are dictated primarily by the number of channels, charging current, certification and add-ons. Low-end units with two channels, current of less than 500mA and an LED status indicator are quoted below $2.20.
Midrange units have four channels, 500 to 1,000mA and LED, and go for $2.25 to $5.20. Versions with four channels, LCD and current exceeding 1,000mA are regarded as high-end and priced above $5.50. Approval and quality certification can raise quotes by as much as 10 percent.
The cost of raw materials and components, which accounts for about 75 percent of production outlay, also affects pricing significantly. PCBs, plastic, cables, plugs, ICs, LEDs and LCDs are commonly sourced from domestic providers but ICs can be procured in Taiwan or South Korea on request.
After the sharp drop in 2Q08, average material costs rose between December 2008 and June 2009. Copper, for instance, climbed to about $5,100 per ton in June from $2,770 in end-2008.
Even so, suppliers have kept standard battery charger prices intact to cope with competition. In coming months, some makers, however, plan to increase quotes by up to 5 percent if material expenditure continues to rise. Several companies, in contrast, will continue to leverage their price advantage to attract more orders. Currently, models from China are 5 to 10 percent less expensive than foreign brands.
In line with efforts to increase product marketability and competitiveness, China makers are enhancing capability and charger quality. Work is centered on improving manufacturing processes and turning out designs that conform to various standards.
Shenzhen Kosun Industrial Co. Ltd, for instance, is planning to utilize surface-mount equipment to replace manual labor and increase product efficiency. Companies that regard the line as a secondary priority, however, continue to subcontract SMT, conducting on-site audits and sampling in partner factories to ensure quality.
Suppliers are also strengthening quality assurance systems. Most factories follow ISO 9001 requirements, but some already comply with ISO 14001. Processes include IQC, IPQC, OA and OQA. Factories are equipped with current, voltage, inner resistance and power testers.
Laboratories have frequency converters, electronic load mainframes, constant temperature and humidity chambers, and digital universal meters.
There are also high and low temperature, salt-spray and leakage current testers.
Major players usually source machinery from the US, Germany or Japan.
Most standard battery chargers from China meet CE, RoHS, CCC and FCC requirements. Models that comply with UL, CB, CQC, EK and SAA are also available.
Shenzhen LVSUN obtained most of these certification to strengthen its foothold in Europe and the US. The company is now applying for QC08000 authentication.
Shenzhen Pkcell Battery Co. Ltd has also obtained CE, CB, GS and CQC approval and UL listing for its quick and smart models.
There are 50 to 60 makers of standard battery chargers in China. About 90 percent of enterprises have manufacturing facilities in Guangdong province, which boasts an abundant supply of skilled workers, convenient transport network, mature industry chain and preferential government policies. Manufacturers there are located in Shenzhen, Zhongshan, Guangzhou and Dongguan.
Others are based in the provinces of Zhejiang, Jiangsu, Shandong and Sichuan.
Due to fierce competition and relatively low profit margins, some makers are contemplating on shifting to sectors with healthier returns.
Wisdom Opto-Electronic Technology Co. Ltd has begun developing waterresistant switches and protection circuit modules, and plans to exit the chargers industry in coming months.
Most suppliers, however, will stay in the line and continue to produce other electronic components to generate better revenue. More than 90 percent of standard battery charger manufacturers in China also offer car-use models, power adapters, converters, transmitters, and batteries and packs.