iPod armbands

	The CLMS24 from Shenzhen Cailiang is an iPod speaker that features a radio alarm clock and wireless remote control.

Suppliers in Shenzhen offer a wide range of non-electronic and electronic accessories.

Guangdong’s established supply chain for many electronic products has enabled it to grow its iPod accessory industry in rhythm with the rising demand worldwide. Shenzhen, which has been experiencing rapid growth in recent years as a manufacturing powerhouse for different types of products, is the locus of production activity for many iPod accessories.

Shenzhen’s comparative advantage as a sourcing center for iPod accessories is boosted by several factors, foremost of which is its rich human resource backed by years of experience developing and producing many electronic products. The city itself has a good mixture of locally based professionals and skilled workers. It also plays host to a growing population of migrant workers from Asia and other parts of China. The rising wage in Shenzhen, now among the highest in the country, will continue to attract skilled human resource to the city and help propel Shenzhen’s overall technical proficiency further.

Shenzhen also has an established supporting industry for sourcing components and raw materials, and outsourcing production processes and even design development work. Makers of iPod accessories based in the city can easily source key components from local suppliers or agents of international distributors, depending on what kind or quality of component they need. With many of these makers focusing on assembly work, they can engage any of several partner factories in Shenzhen for mold tooling, plastic injection molding or other requirements.

Shenzhen’s flourishing OEM and ODM market is likewise boosting the city’s status as a production hub and attracting foreign investments. At least 83 companies in the world’s Fortune 500 list have already invested in Shenzhen. Another attraction of the city is the China Hi-Tech Fair.

Makers in Shenzhen produce both electronic and non-electronic iPod accessories. Non-electronic iPod accessories, which are generally positioned as entry-level and midrange products, include cases, pouches and screen protectors. Suppliers of these products emphasize stylish design, craftwork and material used.

There is a wide range of electronic iPod accessories so buyers can choose from a plethora of entry-level, midrange and high-end accessories. As profit margins from electronic iPod accessories are higher than from non-electronic products, more suppliers are drawn to the segment. This is fueling growth in the supplier base and speeding up new product rollouts.

Buyers of electronic iPod accessories will find speakers, docking stations, adapters, cables and chargers in Shenzhen. Suppliers of these products attach more importance to the configuration design, product performance and casing.

Because of the lower entry threshold and manufacturing requirements for non-electronic iPod accessories, this segment has been expanding significantly in recent years. Most iPod accessory makers generated a good portion of their revenue from their non-electronic models last year.

However, the appreciation of the yuan this year and declining demand for non-electronic accessories as opposed to electronic accessories is slowing down the sector a bit. Several companies are downplaying their non-electronic iPod accessory line and shifting to electronic products.

Makers of iPod accessories in Shenzhen focus on the development and promotion of their new products. To be able to match the market and Apple’s proclivity to constantly redefine itself with its new releases, makers are likewise on their toes and monitor market developments to be able to develop the products that mirror these trends. This year, cases, pouches and screen protectors dominate the line, taking 70 percent of the total market share. Cables, chargers and adapters combined account for 20 percent, and docking stations, speakers and FM transmitters make up the rest.

In the coming months, iPod speakers will likely gain a larger market share. This is fueled by the development of features that enable iPod speakers to be used with other devices, including iPhones and PCs.

Meanwhile, competition in the case, pouch and even docking station lines will continue to intensify.

Although makers are generally confident that market growth will continue for the next few years, they anticipate that the demand growth will start slowing down as unit sales of iPods start growing more slowly.

Another challenge for iPod accessory suppliers is the royalty fee for the Made for iPod (MFI) logo, which now costs $4 per unit.

Shenzhen Koonhome Technology Co. Ltd started producing iPod accessories in 2002. The company estimates its total iPod accessory production this year will reach about 120,000 units. Shenzhen Koonhome markets its iPod accessories as midrange products.

Shenzhen Jame's Style Co. Ltd supplies iPod cases made of PVC and leather. Its estimated total output this year is 200,000 iPod accessories, of which 70 percent are iPod cases.

Actsun International Ltd, which started producing iPod speakers in 2008, currently has a monthly output of 50,000 iPod speakers.

Shenzhen Cailiang Electronics Co. Ltd supplies mostly high-end iPod speakers. It claims its iPod speakers are certified by Apple.