Shenzhen Highstar's HSD800A features two speakers and a built-in FM auto scan radio.

Designs match portable electronics and PCs. Product development is at a standstill as makers wait for demand for new features.

Mainstream mini/portable speakers in China use ABS or acrylic as main material. These come in compact form factors with simple or fancy designs that match their intended devices such as the iPod, MP3 players, MP4 players, portable media players (PMPs), mobile phones, and notebook and desktop PCs. Frequency ratings are up to 150Hz and power output is up to 10W. Some models have built-in amplifiers and FM radios.

Most makers involved in mini/portable speaker production treat it as a secondary line. Hence, most makers outsource production processes like cosmetic designing and mold making/tooling.

Guangdong province is the key sourcing hub for mini/portable speakers. There are more than 150 active manufacturers and exporters in Shenzhen, accounting for more than 90 percent of China’s supplier base. Most of them are professional manufacturers of electronic premiums and gift products with more than three years of OEM/ODM experience.

The product line is already mature in terms of technology and demand. Although makers have the ability to develop new models for OEM/ODM orders in a month, most of them are offering models that were developed almost a year ago. None of the interviewed makers are enthusiastic in producing wireless models at the moment.

	Shenzhen SoonLeader has launched model SL-MN812C, which features up to 150Hz frequency response.

China makers are not prioritizing development of new mini/portable speakers because demand has been flat. Nevertheless, there are some companies that have introduced a few innovations to the line, like Shenzhen Gotole Electronics Co. Ltd.

Shenzhen Gotole launched a mini/portable resonance “speaker” last October. The new product actually has no speaker but works via the resonance method. It is palm-size and made of polyphenylene ether compound. When placed on a table, glass door or steel tube, the product interfaces with an MP3 or MP4 player and transmits sound with up to 20W power output or up to a distance of 50m from where it is mounted.

Shenzhen Gotole’s resonance speaker comes in UFO design and silver color. The company plans to gradually switch product development focus and production from traditional portable speakers to this new product. It has an eight-member R&D team that can release a new model in one month.

Shenzhen Highstar Electrical Co. Ltd offers model HSD803, mini/portable speakers that feature a built-in hi-fi stereo amplifier. The patented set connects to CD players, MP3 players and MP4 players. Shenzhen Highstar also offers model HSD800A, which features two speakers and a built-in FM auto scan radio operating on the 87MHz to 108MHz frequency range.

Shenzhen Highstar is one of the few makers that
focus on producing in-house designed and patented models. The company’s product development team consists of about 20 engineers. It uses a high-frequency oscillograph, electroacoustic test devices and a signal generator.

Shenzhen SoonLeader Electronics Co. Ltd has launched model SL-MN812C, which features up to 150Hz frequency response. The unit has 500mV input signal sensitivity and more than 2W power output per channel. It measures 205x138x30mm and is powered by four AA batteries or through an external AC adapter.

Shenzhen SoonLeader also offers model SL-IPM-022, which features a patented mini pouch speaker design. The unit’s power output is 1W and its frequency range is from 200Hz to 12kHz. The SL-IPM-022 is powered by two AAA batteries.

Prices of mini/portable speakers range from $1.80 to about $6. Plastic and metal account for about 50 percent of product cost.

Material costs have been increasing in the last 12 months and will continue on this upward trend into the next year. Together with the increasing valuation of the yuan against the U.S. dollar, profits to be made on mini/portable speakers have seen rock bottom for some time, forcing the industry to consolidate.

A slight price increase is expected in the next six months.

China makers’ average monthly output is 50,000 units. The figure is way below some makers’ maximum monthly capacity. Most makers are not much concerned about the flat demand though, since they consider the mini/portable speaker line as a sideline.

Established in 1999, Shenzhen Highstar has 10 assembly/production lines at its 7,500sqm ISO 9001:2000-certified factory in Shenzhen. The manufacturer has 400 workers. Its in-house production processes include mold making, plastic injection, spraying and printing, and assembly. Shenzhen Highstar’s other product offerings include radios, LCD timepieces, calculators, USB products, table lamps, flashlights and telephones.

Shenzhen Highstar estimates its revenue from mini/portable speakers at $8.3 million in 2007. The company projects its 2008 sales to reach $9 million.

Shenzhen Gotole has eight years of manufacturing and exporting experience in health care equipment and gift products. The company’s products include massagers, health care devices, beauty products, electronic gifts and small electrical home appliances. The maker operates a 3,100sqm factory in Shenzhen and employs 300 workers. For OEM/ODM buyers, the company accepts a minimum order of 5,000 units.

Shenzhen Gotole’s mini/portable speaker revenue in 2007 is estimated at $900,000. Although the company projects its production volume to decrease in 2008, it is confident that its resonance speakers will more than make up for the decrease in production and increase sales value to $1 million.

As a gifts and premiums electronic product, the mini/portable speaker line is dependent on exports, mainly as OEM and ODM orders.

Shenzhen Highstar exports 60 percent of its output as OEM or ODM orders, or as own-brand (Highstar) sales. The manufacturer’s export value is estimated at $5 million for the whole of 2007. The company said its shipments for the coming year are projected to reach $5.5 million.

Shenzhen Highstar’s OEM customers include Sony Ericsson, Motorola, HSBC and DHL. Its major markets are countries in the European Union and the United States.

Shenzhen Gotole exports its entire mini/portable speaker output. Its products are CE-approved and RoHS-compliant. The manufacturer’s OEM clients include MP Innovation of the United States, Soel of South Korea, Sky Gift of Singapore, Mtshaki of Japan and Alax of the United Kingdom.