Cordless Phones

China's cordless phone manufacturers are projecting 15% growth for the coming year, with demand driven by customers seeking to replace older models with new phones.

These replacements will operate at higher frequencies, with longer ranges and have additional value-added features.

Now, with your copy of this 130-page report, you can pre-qualify producers best able to supply you with higher specification phones at competitive prices.

You'll get detailed profiles of 27 key cordless phone manufacturers. Plus, you'll benefit from a detailed industry overview, emphasizing production forecasts, R&D trends, QC developments, price projections and other vital issues.

What you'll get

A Product Gallery featuring key specifications and color pictures of 119 popular export cordless phones, including 2.4GHz, 46/49MHz, 5.8GHz, 900MHz, DECT and long-range models

Inside information on companies that serve the world's leading brands such as AT&T, British Telecom, Cable & Wireless, LG, Philips, Sanyo and Wal-Mart

Deep profiles of 27 major suppliers that feature detailed information on their manufacturing capabilities, product and pricing strategies, QC plans and new product developments

Profile tables of 16 additional manufacturers with key sourcing data including production capacities, export markets, technology partners, product lines and R&D focus

How you'll benefit

Understand how "fixed-to-mobile substitution" is impacting the design and functions of upcoming product releases

Get comparison tables that let you easily compare suppliers' in-house manufacturing capabilities, capacity utilizations, product ranges and certifications

Review a special report on Fujian province that explains why it is China's premier location for sourcing long-range cordless phones

Access quick-to-use summary listings covering all featured suppliers and including verified contact details and website addresses

Executive summary

The rising supply of higher-frequency, value-added cordless phones is projected to sustain growth in the cordless phone industries across Greater China, comprising mainland China, Hong Kong and Taiwan. Estimated output for 2004 from the region was 99.26 million cordless phones. Eighty-two percent of this, or 81.88 million units, were shipped overseas. The projected output and export volumes for 2005 are 114.83 million units and 87.47 million units, respectively.

This report profiles 43 cordless phone manufacturers: 24 mainland China-owned companies, 14 Hong Kong-based suppliers and five Taiwan-owned makers. Their total production volume for 2004 was 29.54 million cordless phones, equivalent to 30 percent of Greater China's output. They project output to climb 33.81 percent in 2005 to hit 39.53 million units. This would be equivalent to 34 percent of Greater China's total output for the same year.

Among the other findings of this report in terms of production are:

• There are 110 makers of cordless phones across Greater China. More than 90 percent of production is carried out in mainland China.

• The major manufacturing centers for cordless phones in mainland China are Guangdong, Shanghai and Fujian. Fujian accounts for more than 98 percent of mainland China's long-range cordless phone output.

• In Taiwan, the sourcing centers for cordless phones are Taipei and Taichung.

• Mainland China-owned companies produced 41 million cordless phones in 2004. Output is forecast to increase by 24 percent to reach 51 million units.

• The Hong Kong Census and Statistics Department reported cordless phone output for the period January to October 2004 at 46 million units. This is expected to rise to 55.76 million cordless phones by the end of 2004.

• Taiwan produced 2.2 million cordless phones in 2004, and will likely keep output at the same level in 2005.

The main findings of this report in terms of exports are:
• Greater China's cordless phone shipment for 2004 reached 81.88 million units. In 2005, the projected export volume is 87.47 million units, a 6.82 percent rise.

• Mainland China shipped 26.76 million cordless phones in 2004, 65 percent of the 41 million units produced that year. Exports will climb to 27 million cordless phones in 2005.

• 2004 exports from Hong Kong were estimated at 52.92 million units. This will grow to 58.27 million cordless phones in 2005.

• The Taiwan-headquartered companies in this report exported 436,000 units in 2004. They expect shipments to drop to 386,000 units in 2005. Taiwan companies said that the island's cordless phone industry will continue to shrink in the coming years, as more makers focus on mobile handsets.

Industry overview

The slowing growth in fixed-line subscription pushed down sales of cordless phones in recent years. In Taiwan alone, fixed network, mobile and data services accounted for 25 percent, 56 percent and 19 percent respectively of total telecom revenues for 2003, according to the Directorate General of Telecommunication. In mainland China, the Ministry of Information Industry (MII) reported that as of November 2004, there were 329.92 million mobile subscribers in the country, up 59.97 million from the end of 2003.

Comparatively, there were an estimated 312 million fixed-line subscribers in 2004. Mobile subscription in mainland China increased at least 22 percent from 2003 to 2004, while fixed-line subscription grew by 18 percent during the same period.

Data from the Consumer Electronics Association (CEA) estimated unit sales of cordless phones to have slightly dropped from 37.9 million in 2003 to 33.8 million units in 2004. In terms of value, these would translate to US$1.13 billion sales in 2003 to US$976 million sales in 2004.

Despite declining sales, however, cordless phone manufacturers across Greater China are projecting steady production and R&D growth. This growth will partly be driven by rising demand for higher-frequency phones that will work outside of the increasingly crowded 46/49MHz and 2.4GHz frequencies, as well as those that allow for extended operating ranges. Value-added functions such as basic text or unified messaging will likewise spur product development, in line with the trend toward fixed and mobile convergence.

Although fixed-to-mobile substitution (FMS) will continue to be a strong influence, research by MORI indicated that there remain motivations (among consumers) for maintaining landline subscription. These include rational—cheaper charges, absence of network coverage limitations, permanent number and availability of line for data-access and fax transmissions—as well as emotional reasons—sense of 'home' and security, association with 'cozy' conversations and cultivating relationships. Meanwhile, mobile handsets are perceived to be used for basic, hectic lifestyles, and are considered to incur higher call rates.

The DECT phones sector, in particular, is forecast to experience fast growth in 2005, as the technology slowly moves toward the convergence of voice and data. Worldwide shipments of DECT phones are expected to climb from 34.4 million units in 2001 to 61.8 million units in 2005, at 15.8 percent CAGR, according to the DECT Forum. The forum also projected in early 2004 that analog cordless phones will slowly phase out, and corded phone shipments will decline. Cordless DECT terminals will steadily grow, with the market in Western Europe alone expected to exceed 30 million units by 2008.

Greater China cordless phone industry
Combined shipments of cordless phones from mainland China, Taiwan and Hong Kong in 2004 were estimated at 81.88 million units. This is equivalent to 82 percent of the total output estimated at 99.26 million units.

There are 110 cordless phone makers in mainland China, Taiwan and Hong Kong. More than 90 percent of these companies produce their cordless phones in mainland China. Of 99.26 million units expected to have been produced in 2004, a little over 92 million units were made in mainland China.

Samples of supplier profile

Advance Wireless Technology Corp.
Advance Wireless Technology Corp. was established in 2000 as a design house engaged in the development of wireless communication and networking products. Its founders were mostly from a Taiwan-based communication company, Vidar SMS (Sun Moon Star) Group, which develops and markets pagers and cellular phones.

Over the years, AWTek has expanded its core wireless technologies to include Bluetooth products, GSM phone modules, wireless PBXs, home gateways and VoIP products such as phones and gateways. Although projections point to a surging demand for VoIP products, the company will focus on DECT-based products and IP PBXs in the next two years. It believes the market for VoIP products will not boom until 2006.

DECT cordless phones supporting voice and data transmission have been the company's main product line. The maker is taking advantage of the opportunities for small and medium-sized companies to fill huge orders from large customers, and is leveraging its solid engineering background to position itself in the lead. To generate sales, AWTek sells its finished products and licenses its wireless technologies. In 2003, its sales revenues reached US$1 million and US$1.5 million was projected for 2004. In 2005, the company hopes to realize sales of US$3 million. About 30 percent of sales each comes from DECT, VoIP and IP PBX.

Exports of cordless phones took up 50 percent of total exports for 2004. AWTek exports about half of production. The main destinations are North America, Western Europe and Southeast Asia.

Manufacturing capability
AWTek has an R&D center and factory in Taichung. The factory has an area of 660 square meters, and is equipped with one assembly and testing line. SMT requirements are subcontracted to other factories in the area.

AWTek sends two QC engineers to the subcontractor factories to inspect the production processes and check product quality. AWTek's monthly production capacity for cordless phones is 10,000 units. It can raise this to 50,000 units a month through the use of more subcontractors. At present, it subcontracts production of ODM products for some of its customers from Germany to mainland China factories.

The company uses ARM-based SoC chips and discrete DSP chips for its VoIP products. Philips and NS chip solutions are adopted for DECT-based products. AWTek has been working with chip companies to help define chip features and develop user interface and MMI functions.

Product & price trends
AWTek has been working with Winfinity GmbH of Germany, which has more than 300 R&D engineers. It also has investments in Winfinity Asia Technology Corp. in Taiwan.

Generally, large OEM or ODM projects are handled by Winfinity, while small in-house design projects are taken on by AWTek.

Sample of product gallery

2.4GHz Cordless Phones Cheung Hung Model name/number: CH-801 Minimum order units: 2,000 Indicated FOB price: US$29 Key features & specifications: 130x53x140mm base station, 138x35x52mm handset, 650g, 300m operating range, 4 handsets, 1 base station, caller ID, remote speakerphone on handset, intercom between base station and handsets

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