Corded Phones

Mainland China, Taiwan and Hong Kong manufactured 152 million corded phones in 2004. That figure is expected to grow by 19% in 2005.

Now, you can narrow the list of suppliers who best meet your needs, with this 166-page report that gives you access to 27 in-depth supplier profiles.

Plus you'll get a complete overview of the region's corded phone industry — from price trends to production capacities, export markets to research developments.

This is one-of-a-kind information you can use to evaluate new suppliers, benchmark current ones and find new sourcing opportunities to help your business grow.

What you'll get

Inside information on manufacturers that supply such global operators and retailers as AT&T, Alcatel, NEC, Ericsson, RadioShack and Wal-Mart

In-depth profiles of 27 leading corded phone producers, providing details on manufacturing capabilities, product and price plans, sales performances and future development initiatives

Profile tables of 30 additional suppliers, with emphasis on key sourcing data such as production capacities, export market profiles and R&D plans

A full-color product gallery featuring 208 popular corded models, with detailed, easy-to-compare specifications

How you'll benefit

Learn the results of Global Sources' latest supplier survey, forecasting price, product, production and R&D trends for the next 12 months

Identify which models are best suited for your price entry point and which manufacturers you should contact

Examine the product innovations and R&D strategies suppliers are using to stimulate demand for corded phones and slow user migration to the mobile-phone market

Get full company contact details, including phone numbers, e-mail addresses and website URLs

Executive summary

Growth in the mature corded phone manufacturing industry in Greater China, comprising mainland China, Hong Kong and Taiwan, will be sustained by rising output and technological innovations. Makers will also invest in product innovations to stimulate demand. Total production during 2004 was estimated at 151.96 million units. Exports for the same period reached 103.69 million units, representing 68 percent of output. The projected output and export volumes for 2005 are 181.36 million and 125.65 million units, respectively.

This report profiles 57 corded phone manufacturers: 38 mainland China-owned companies, 12 Taiwan-owned makers and seven Hong Kong-based suppliers. Their total production volume for 2004 was 129.82 million units, which is equivalent to 85 percent of the estimated overall production for the entire Greater China. They exported 83.65 million units in 2004.

The projected output volume for 2005 from these companies is 155.84 million corded phones, a year-on-year rise of 20 percent. This would be equivalent to 88 percent of the overall Greater China production volume for 2005. Exports are forecast to climb to 102.44 million units in 2005.

The findings of this report with regard to manufacturing bases are:

• There are over 175 makers of corded phones across Greater China. About 97 percent of production is carried out in mainland China, where all Hong Kong companies have factories.

• In mainland China, the major production centers are Shenzhen, Dongguan and Huizhou in Guangdong province.

• More than 75 percent of Taiwan-owned suppliers have moved their production to the mainland. Most of these companies are based in Taipei. Other makers can be found in Taoyuan, Taichung and Kaohsiung.

Major production findings are:
• The estimated output of mainland China-owned companies for 2004 was 101.83 million units. This is expected to rise 29 percent to 125.1 million units by end-2005.

• Hong Kong-owned makers produced 21.7 million corded phones in 2004. They expect to make 22.7 million units this year.

• Production of Taiwan-owned companies reached 6.3 million corded phones in 2004. The target for 2005 is 8.04 million units.

The major export findings include:

• The major export markets are North and South America, Europe, Southeast Asia and the Middle East.

• Mainland China-owned companies shipped 57.17 million units of corded phones in 2004. The target export volume for 2005 is 73.57 million units.

• Hong Kong-owned companies exported 21.6 million corded phones in 2004. They plan to ship 22.6 million units this year.

• Shipments from Taiwan totaled 4.88 million units in 2004. Companies are planning to ship 6.26 million units overseas in 2005.

Industry overview

Combined production expansion and R&D innovations augur well for the mature corded phone manufacturing industry across Greater China, comprising mainland China, Taiwan and Hong Kong. Makers believe that while competition from mobile and cordless phone technologies will continue to plague the sector, growth will be sustained in the coming years.

The growth of wireless telephony has adversely affected the corded phone industry. Many companies have been forced to leave the line. The makers fighting to stay in the sector do so by integrating mobile phone functions and features into their products, such as SMS, and even mobile network support as in the case of fixed wireless terminals. Other notable features being included into corded phones are VoIP, telephone answering device (TAD) and polyphonic ring tones.

To come up with data representative of the Greater China corded phone industry, this report surveyed 38 of the 50 active corded phone suppliers in mainland China, and 12 out of 25 firms in Taiwan.

Although this report only covers seven out of more than 100 Hong Kong makers, these companies are major drivers of Hong Kong's corded phone sector.

The companies interviewed for this report produced 129.82 million corded phones in 2004, representing 85 percent of Greater China's estimated total corded phone production of 151.96 million units for the same year. These same companies exported a total of 83.65 million units in 2004, accounting for 81 percent of total Greater China exports for the whole year.

Greater China's shipments of corded phones in 2004 were estimated at 103.69 million units — 68 percent of the 151.96 million units produced for the entire year.

There are more than 175 makers of corded phones across mainland China, Hong Kong and Taiwan. Companies in mainland China, Hong Kong and Taiwan accounted for 69 percent, 29 percent and 2 percent, respectively, of Greater China's total corded phone production.

In the early 1990s, a huge number of manufacturers joined the corded phone line in mainland China, causing the supplier base to grow to 600 makers. However, market consolidation and competition has reduced this supplier base. There are now about 50 active corded phone makers in mainland China.

About 92 percent of these suppliers are private firms. Only 5 percent can be categorized as state-owned enterprises. The rest are publicly listed firms such as TCL Communication Equipment Co. Ltd.

Overall, 76 percent of mainland China's corded phone producers are locally owned, while equal shares of the remaining 24 percent are divided between joint-venture and foreign-owned firms. All of the mainland's manufacturers can generally fall under two categories: large electronics companies that can produce a wide range of products, and telephone specialists that turn out either corded or cordless phones, or both.

Samples of supplier profile

Auto Telecom Co. Ltd (ATC)
Auto Telecom Co. Ltd (ATC) has been designing and manufacturing KTSs and PBX systems and telephones since 1987. It is headquartered in Taipei, but has subsidiary operations in Australia and Indonesia. It currently offers 16 phone models and eight phone system models.

Annual sales of all products grew by 25 percent from US$48 million in 2003 to US$60 million in 2004. ATC forecasts this figure to grow by another 25 percent to 30 percent to reach US$75 million in 2005.

For corded phones, annual sales in 2004 amounted to US$1.5 million, and this is expected to grow 33 percent to US$2 million in 2005.

Annual exports in 2003 totaled US$33 million; and US$42 million in 2004. Exports of corded phones reached US$1 million in 2004. In 2005, ATC expects total exports to exceed US$55 million, with corded phones taking up US$1.4 million.

The firm's two major export markets are Indonesia and Australia. It ships 70 percent of its output to the overseas market from Hong Kong.

ATC ships 65 percent of its products to OEM clients and sells the remaining 35 percent under its own brand names. Its in-house labels include the Hybrex and Transtel brands in the United States, Australia and Indonesia. Its past OEM clients include Doro in Sweden, Denmark, Finland and Norway, and Ericsson in Australia. For Asia, its biggest OEM customer at present is Olympia.

The company keeps a three-month inventory of finished products to accomplish orders in 45 to 60 days.

Manufacturing capability
ATC's 4,000-square-meter three-story factory in Shenzhen was built in 1996. It has a monthly production capacity of 17,000 telephones, and an actual production of about 16,000 units.

VoIP phones now account for 10 percent of ATC's monthly corded phone output, while KTSs made up the remaining 90 percent.

The company subcontracts most of its production processes, including mold making, plastic injection and silkscreen printing. Its factory handles only housing assembly, general assembly, QC and packaging.

ATC's in-house production process operates in a top-down flow. Parts and components are transported from the warehouse on the third floor to the second floor for initial and intermediate assembly.

The second-floor assembly area is organized into six stations, divided between telephone systems and telephone sets. All assembly activities are carried out manually.

QC is administered at every station. Semi-finished products are transported to the first floor for final assembly, quality control and packaging.

ATC sources all of its product components from suppliers in Taiwan. It has recently experienced a delay in procurement of ICs as a result of high market demand.

In order to overcome the shortage of ICs, the company maintains six months' worth of IC supplies in its warehouse.

With current factory production close to capacity, ATC is looking to narrow the margin between capacity and actual utilization to meet demand this year. To increase monthly output by 33 percent, it plans to add another assembly workshop in Shenzhen.

Sample of product gallery

Basic Phones Company: BLT Digital Model name/number: HA8688(T)01 Minimum order units: 500 Indicated FOB price: US$3 Key features & specifications: 400g, call waiting, speed dial, phone book, keypad lock

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Global Sources Industry-specific China Sourcing Reports

All this column of information contained in China Sourcing Reports is the result of original, independent and impartial research conducted by Global Sources analysts.

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