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Wide applications sustain the industry amid the economic slump. Intense competition yields enhanced units at reduced prices.
Suppliers of wired headphones and earphones in China continue to build on the products’ audio quality and transmission advantages over infrared, RF and 2.4GHz wireless rivals. Since the mature technology is unfavorable to further innovation, makers instead are enhancing performance and external designs to keep the lead. Portable devices such as MP3 and MP4 players comprise the line’s captive market, although application also extends to home entertainment, games, PCs and mobile phones.
China offers mostly entry-level and midrange wired headphones and earphones. The mainstream models have a 2 or 2.1-channel stereo configuration, 100dB or higher sensitivity, 16 or 32ohm impedance and 20Hz to 20kHz frequency response range.
Intense competition, however, is driving some makers to shift to the midrange and high end where returns are better. Some suppliers, for example, have increased impedance to 50ohm and higher to match the audio requirement in the hi-fi and professional-use segments. Others are releasing 5.1, 6.1 and 7.1-channel models for home theater application. These units come with built-in sound cards and USB interfaces.
Noise cancelation is another feature in upscale versions. Makers see wider adoption in future releases across categories because of the technology’s audio-enhancing and hearing-protection benefits.
For improved portability, comfort and style variation, makers offer a choice of materials. ABS and other types of plastic are commonly used for their lightweight quality and color variety. Metal, on the other hand, is favored for durability and appearance. Entry-level and midrange models mainly adopt plastic, while high-end units combine it with metal.
Suppliers expect production and exports to remain stable, or even grow this year. The economic slowdown, although affecting MP3 player sales, is having little impact on wired headphones and earphones due to current market positioning in the entry level and midrange.
The exception is prices, which are projected to drop as a consequence. The reduction, however, will be minimal, not exceeding 10 percent.
The wired line accounts for the bulk of China’s headphone and earphone production, with wireless models having only a 20 percent share.
The country is responsible for at least 60 percent of global output. Entry-level products are shipped, mainly to the Middle East, India and Southeast Asia, midrange to South America and Eastern Europe, and high-end to North America and Western Europe.
China’s wired headphones include over-the-head, behind-the-neck and clip-on types. Earphones come in traditional earbud and in-ear designs.
The over-the-head style is most popular, accounting for about 50 percent of wired headphone production. Durability, drop and vibration resistance, and the pad design’s noise-reduction feature are its attractions. Active noise cancelation is available in high-end models. The bulky form factor, however, makes this headphone type more suitable for home and studio applications.
The behind-the-neck and clip-on models have the added advantages of portability and trendy design, which appeal to the youth segment.
Wired earphones are widely bundled with MP3 players and other portable electronics. Although comparable in sound quality to other types, these have a nonenclosed design that does not effectively block outside noise. In contrast, the upgraded in-ear design enables passive noise cancelation. This feature enhances audio reception, reducing the need to turn up the volume, thereby protecting the ear as well.
Mainland China makers source solutions and chips from Taiwan suppliers, including C-Media and Via Technologies, and from local agents of Philips and Toshiba. Magnets, copper wire and plastic come from domestic, Japan, South Korea and Taiwan sources. The majority uses TPC, OCC and OFC cables.
China has about 300 makers of headphones, more than 80 percent of them operating in the cities of Shenzhen, Dongguan, Guangzhou, Huizhou and Zhongshan in Guangdong province. Many have in-house facilities for plastic injection, cable assembly, speaker driver unit and PCB making, screen-printing, final assembly, QC and packaging. SMT and mold making are usually subcontracted to other factories for cost reasons.
Competition, along with the global financial crunch, has resulted in the exit of some suppliers. Small enterprises dependent on low-profit OEM orders have been the most affected. Makers with ODM and OEM capability, and a stable client base remain buoyant.
Wired headphones from Taiwan suppliers come in over-the-head, behind-the-neck, foldable and clip-on designs.
Compensating for their size and weight, the bulky models offer noise reduction and 5.1-channel surround sound that meet home entertainment and game requirements. Compact and lightweight versions are for laptops, with mainstream units integrating microphones for popular PC applications such as VoIP. These have USB connectivity for portable A/V devices.
Headphones in a 5.1-channel configuration are still considered high-end, accounting for less than 20 percent of Taiwan’s output. Only about 15 of the island’s 30 to 40 makers offer them.
The mainstream models are low-cost solutions with monaural or binaural sound and volume control. These are priced at $3 to $5 with an additional $1 for a microphone. Midrange units with ear puffs and 5.1-channel surround sound support are above $10. The high end commands a greater than $30 price. Products in this segment deliver 5.1-channel surround sound, have wireless connectivity and integrate a radio and an MP3 player. Some for professional use are also water-resistant.
At Morning Sound Industries Co. Ltd, high-end models are $6 to $10. Among them is a hi-fi-stereo headphone with a dynamic microphone and a 3.5mm connector or USB plug. The company also makes foldable headphones.
Taiwan suppliers include acoustic product specialists such as Merry Electronics, Cotron and Toong In Electronic. The majority also offers wireless RF and Bluetooth models.
More than 80 percent of the island’s production is exported to OEM and ODM customers, mainly in Japan, North America and Europe.
Hong Kong suppliers are expanding their range of wired headphones and earphones to serve a wider market. Enhancing noise reduction and user comfort are the two main areas of development.
Noise-canceling units top many makers’ selection. At Cobalt Industrial Co. Ltd, one such model is the NC-681, a triple-mode active noise-reduction headphone. It can lessen background noise by up to 85 percent or 15dB at 300Hz. The unit, which has a circumaural earcup design, uses six microphones compared with two to four in other products. Multiple folding styles are supported, including flat and sphere shapes.
At iLike Electronics Co. Ltd, noise-canceling headphones are capable of up to a 23dB reduction level. The NC-850 has 40mm drivers and comes with an inline control box with volume control and an on/off switch. Its microphone sensitivity is -58dB+2dB, impedance 32ohm, speaker sensitivity 108dB+3dB and maximum power rating 200mW.
The main competition among Hong Kong suppliers, however, lies not in technology but in design.
Increasing their penetration of different consumer subgroups, makers offer distinctive styles, functions, accessories and price ranges. They target women, students, teenagers, sports enthusiasts, hip-hop followers, frequent travelers, gamers, computer users and studio professionals.
Cobalt’s Edu-317 educational headphone is designed to protect children’s hearing. It has a built-in active circuit that maintains a constant 90dB audio output level regardless of input. The product comes with hypoallergenic ear cushions.
This development is not limited to over-the-head models, but extends to earhook and behind-the-neck styles.
Multifunction headphones with a built-in FM radio and multimedia speakers are also available. One example is iLike’s DJ-5300 foldable professional DJ headphone with 40mm drivers, 32ohm impedance and 108dB+3dB sensitivity. Its external 57mm speaker drivers deliver 0.6W output, 4ohm impedance, 112dB+3dB sensitivity and 20Hz to 20kHz frequency response.
Suppliers offer airplane adapters and carrying pouches as optional accessories.
R&D remains active across the different categories despite a slowdown in overseas shipments. Customs data shows Hong Kong’s exports of headphones and earphones dropped by 26 percent to 304 million units in 2008.