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Product customization key as makers emphasize compatibility with existing GPS products.
The GPS cable supply market in mainland China and Taiwan is forecast to be stable despite its nascent status and the small supplier population. Makers in mainland China do not see newcomers expanding the supplier base this year, but nonetheless, expect a stable market overall with ample supply. Taiwan makers see new entrants joining the sector in the coming months to meet rising demand worldwide for GPS products and related accessories.
A potential threat to the market is the rising popularity of wireless GPS products, which could ultimately eliminate the need for cables. However, some makers see the market dividing into two directions, where wireless solutions will meet buyers' requirements on one hand and on the other hand, GPS cables will support the market for wired GPS products. Furthermore, makers are optimistic that with the GPS cable market piggybacking on the thriving GPS market, growth would be sustained in the next few years.
Most makers produce GPS cables for the overseas ODM and OEM markets. This has given rise to the practice of customizing products according to the buyer's or destination market's requirements. Makers also customize to ensure that the cables are compatible with the products they are designed to work with. In the absence of a standard interface for GPS products, makers have yet to develop universal GPS cables that will work with currently available products.
There are only a few GPS cable suppliers in mainland China, most of which are located in Guangdong province. Two of the active players are Shenzhen Sunkin Technology Co. Ltd and Shenzhen Lilutong Technological and Industrial Co. Ltd.
Sunkin Technology expect stable demand for GPS cables despite the emergence of wireless GPS products. The company sees wired and wireless solutions serving its own market, and thus sustained market for GPS cables.
Lilutong develops, manufactures and sells wires and cables. Its key products include screened wires, video frequency wires, 75ohm and 50ohm coaxial cable wires, communication cables, single-core and multiple-core series, telephone lines, computer peripheral wires, and acoustics and karaoke wires. The supplier base on the mainland will not likely expand in the near term, as makers focus more on GPS antennas. GPS cables are typically customized products, not being compatible with all GPS products on the market, and as such makers see a small demand for the product line. The growing interest in wireless GPS products is likewise deterring makers from increasing their investments in the line.
In Taiwan, makers are divided according to the products that they produce. There are GPS cable and connector specialists, such as Faddy Precision Industry Co. Ltd and Wieson Technologies Co. Ltd. There are also GPS system suppliers that can offer complete solutions including antennas and cables, and these include Rikaline International Corp., San Jose Navigation Inc. and Etek. The market also includes GPS antenna manufacturers that produce cables as well, including Chinmore Industry Co. Ltd.
Most of the makers of GPS solutions subcontract the production of their GPS cables, antennas and receivers to cable suppliers. Makers expect newcomers to enter the Taiwan market in the months ahead as demand for GPS products continues to rise.
There are two kinds of cables used in GPS products—internal cables and external cables. Internal cables are usually embedded into the products. External cables are used to connect GPS devices to other products.
External cables are increasingly regarded by makers as a transitional product that will eventually be replaced by cordless alternatives. Bluetooth GPS solutions comprise a potential threat to this line. Nonetheless, there are still makers that believe that cable transmissions have an advantage over wireless, and because of this,
GPS cables would not totally be phased out of the market. GPS cables, being one application of RF cables, may work at two frequencies. L1 channel works on 1.5GHz and L2 channel on 1.22GHz. With GPS cables mostly targeted at the OEM and ODM markets, products are generally customized according to buyers' requirements. Specifically, makers can modify the length, as well as connectors and parts used.
Taiwan's Faddy, for instance, developed the GT5 jumper cable. The model supports 3GHz radio frequency. It can be used as a coaxial cable or RG type cable, such as the RG-174. The GT5 comes with two connectors, a micro coaxial and HIROSE GT5 or automobile connector. This model is designed for Japan's automobile makers.
Chinmore offers the SMA F (BH) —1.32-I.PX. It is a series of cable assemblies that uses SMA (female) BH and IPX connectors on both ends. It measures 67mm.
In mainland China, makers offer GPS serial cables— including USB and PS/2 ports—power charger cables and data transfer cables. Sunkin Technology has released a GPS Bluetooth transfer cable that enables most GPS receivers to be compatible with Bluetooth technology. It integrates power supply and transfer functions.
Most makers in mainland China and Taiwan cater to the OEM and ODM markets. Sunkin Technology in mainland China, for example, ships all of its products to overseas ODM clients. The company can produce 3,000 to 4,000 GPS cables a day. Aside from GPS cables, the company also produces data transfer cables and GPS Bluetooth transfer cables. Its major export markets are Europe, North America and Australia.
Sunkin Technology, established in 2001, makes GPS products, electronics and car products. Its cable products can support USB to serial, USB to parallel, and PS/2 to USB interfaces. The company can customize its products.
Taiwan's Faddy positions itself as an ODM and OEM supplier of RF/microwave passive components. Established in 1989 in Taipei, the company generates 50 percent of its RF sector from GPS cables. It exports 60 percent of its products, with Europe being the main export market.
Chinmore started producing GPS cables in 2003 as an addition to its GPS antenna product line. The company produces coaxial connectors, antennas, antenna adapter cables and other accessories. It can produce an average of 10,000m of cables a month. It ships 25 percent of its products to Europe and North America. The company will concentrate on its export markets in 2007.
Established in 1989, Wieson Technologies Co. Ltd positions itself as a solution provider for connectors and cable assemblies for IT products. Wieson is listed on the Taiwan Stock Exchange. The company's product line includes flat cables, optical fiber products, round cables and RF products.