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From tablets to drones: Manufacturers take a detour
Global SourcesUpdated on 2023/12/01
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Shenzhen manufacturers account for virtually all drone exports from China, but entrants come from a surprising place.
Drones like DJI’s Phantom (pictured) are becoming so popular that demand may be outstripping supply, leading to some interesting new market entrants.
According to customs statistics, Shenzhen drone makers were responsible for 99.9 percent of all of China’s drone exports through the first five months of the year. This accounted for 160,000 units, bringing in $121 million in revenue. The numbers indicate that exports are not just limited to smaller toy drones. An ASP of $756.25 suggests that these manufacturers are increasingly taking the higher-end consumer drone market. DJI in particular has seen stunning success over the past year. Parrot, one of DJI’s largest global competitors, saw personal drone sales increase by more than 200 percent YoY in Q2, and there is no reason to think that its competitor saw any less improvement, either.
Interestingly, the drone boom is so great that nontraditional firms are getting in on the act. With the tablet market losing its steam – according to IDC, tablet shipments declined by 7 percent YoY in the second quarter – tablet manufacturers are contracting designers to build drone prototypes. At the Global Sources Electronics show in April, at least 10 former tablet manufacturers were in attendance, and instead of showing off their latest Android tablet, they were exhibiting drones.
While there are concerns that the precision engineering and aerodynamics experience may be lacking in tablet manufacturers in the short term, it is a strong indicator that increasing demand for drones is outpacing supply, at least in the short term, and especially at the low-price segment of the market.
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