In part one of this three-part series, we look at the province’s advantages as it fortifies its position as an export leader.

Buoyed by its robust mobile phone industry, Guangdong province remains China’s largest manufacturing hub for cases for the iPhone. The area’s comprehensive and established industrial chain helps secure its key position in the line. Enterprises based there can easily source materials and components from many local and foreign-invested input providers.

The support infrastructure also covers partner factories that companies can tap for their mold design and making, and plastic injection requirements. This is particularly helpful for small operations without in-house facilities for these processes.

Guangdong’s more than 300 iPhone case suppliers also benefit from the proliferation of design houses in the province. They likewise take advantage of the manpower resource, which boasts strong scientific and technical expertise in many fields.

The sturdy manufacturing chain extends to the downstream aspects. Enterprises in Guangdong leverage the area’s established logistics and transport systems to ship finished goods. Its proximity to Hong Kong enables companies easy access to current trends, particularly in phone case aesthetics.

The major production hubs in the province are Shenzhen, Dongguan and Guangzhou. Being centers of mobile phone R&D and manufacture, these areas provide case makers with a captive market for their releases.

Case makers are riding on the bullish iPhone segment to grow their lines. Shipments of the former more than doubled YoY, according to IDC, reaching 18.7 million units in 1Q11.

Manufacturers foresee stable sales growth in the next 12 months. To match the upturn, businesses have been boosting output.

Shenzhen Kojer’s yield increased by more than 20 percent YoY, while it is 30 percent in the case of Dazec Electronic Co. Ltd.

iPhone cases account for 40 percent of the latter’s total production. Dazec will release iPhone 5 and other smartphone cases this year.

Makers, however, face the challenges of technical labor shortage and rising raw material costs.

Compared with inland provinces, labor expenditure in Guangdong is higher by about 20 percent.

SUPPLIER PROFILES

XYZ Co.

Year established: 2000
Head office location: Seoul, South Korea
Key export products: CCTV cameras
Annual export sales: $5mn
Total monthly capacity: 10,000 units
Average monthly exports: 5,000 units
Export ratio: 50%
Annual R&D spending: $1mn
Major customers: Best Buy, Wal-Mart

Model: DZ-CA3151
MOQ: 500 pieces
Delivery: 7 days
Description: Top-grade sheepskin pouch
for iPhone 4; classic design

XYZ Co.

Year established: 2000
Head office location: Seoul, South Korea
Key export products: CCTV cameras
Annual export sales: $5mn
Total monthly capacity: 10,000 units
Average monthly exports: 5,000 units
Export ratio: 50%
Annual R&D spending: $1mn
Major customers: Best Buy, Wal-Mart

Model: G2830
Description: PC; for iPhone 4; durable than
silicone; semi-transparent; full screen
touchable, cutouts allow access to all
ports, switches; scratches, dirt and shock
protection; 0.6mm

XYZ Co.

Year established: 2000
Head office location: Seoul, South Korea
Key export products: CCTV cameras
Annual export sales: $5mn
Total monthly capacity: 10,000 units
Average monthly exports: 5,000 units
Export ratio: 50%
Annual R&D spending: $1mn
Major customers: Best Buy, Wal-Mart

Model: G2818
MOQ: 10 pieces
Delivery: 2 days
Description: Genuine cowhide leather; for
iPhone 4; full screen touchable, cutouts
allow access to all ports, switches; in pearl
blue

XYZ Co.

Year established: 2000
Head office location: Seoul, South Korea
Key export products: CCTV cameras
Annual export sales: $5mn
Total monthly capacity: 10,000 units
Average monthly exports: 5,000 units
Export ratio: 50%
Annual R&D spending: $1mn
Major customers: Best Buy, Wal-Mart

Model: KTI00359
MOQ: 3,000 pieces
Delivery: 2 days
Description: Top-grade PC; easy access to ports and controls; 62x118x13mm; 19g; all colors available; neutral or customized packaging