PBXs

Mainland China and Taiwan manufacturers are forecast to produce 2.24 million PBXs in 2005, a year-on-year increase of 25%.
What's more, analog makers are rapidly shifting production to wireless and IP PBXs in response to changing customer preferences worldwide.

With profiles of 26 manufacturers responsible for 75% of the region's output, this report gives you the information you need to profit from this massive market opportunity.

You'll also find a comprehensive industry overview with product comparisons, technology trends and coverage of current and emerging supply centers.

What you'll get

In-depth profiles of 14 major PBX manufacturers in mainland China and Taiwan, including details on production capacities, export markets, quality standards and new products. Based on personal factory visits and interviews with senior managers, this information is available nowhere else

Brief profile tables of 12 additional producers, highlighting key sourcing data such as manufacturing processes, monthly output figures and R&D initiatives

Inside information on companies that supply such world-renowned brands as 3Com, Alcatel, Cisco, Linksys and Nortel. Learn which makers are operating at or near full capacity and which can best absorb your orders

Detailed Product Comparison Tables featuring specifications and full-color pictures of 43 top-selling PBX models, including IP, VoIP, and wired and wireless versions

How you'll benefit

Determine which suppliers perform key manufacturing processes in-house and see how that impacts final product quality and FOB prices

Identify those manufacturers whose products carry international certifications such as CE, FCC and ETL

Plan your China sourcing strategy more efficiently using this report's price and output projections

Benefit from quick-to-use summary listings covering all featured suppliers, with easy-to-compare statistics, as well as verified contact details

Executive summary

The PBX manufacturing industries in Taiwan and mainland China are projected to rebound after years of slow growth as makers shift from traditional wired and analog PBXs to wireless and IP PBXs. In addition, the trend towards packet-switching and converged data and voice worldwide will speed up product development efforts and release of new and value-added PBXs.

This report covers 18 companies from Taiwan and eight companies from mainland China. The 18 Taiwan-based companies represent 62 percent of the island's 29-company supplier base and 60 percent of the total annual PBX production. Aggregate PBX sales in 2004 from these companies reached $88.9 million. The eight profiled mainland China-based companies represent 67 percent of the mainland's 12-company PBX supplier population and account for 90 percent of the mainland's annual PBX production. These companies reported $111.75 million in PBX sales revenue in 2004, of which $46.67 million came from exports.

Based on data from respondents in this report, the combined PBX production volume for 2004 from Taiwan and mainland China reached at least 1.79 million units. The projected combined production volume for 2005 is 2.24 million units, a 25 percent growth.

The combined production volume from companies in this report reached 1.40 million units, of which 29 percent was exported or 402,738 PBXs. In 2005, their projected output is at least 1.75 million PBXs, an increase of 25 percent. Their exports for 2005 will reach at least 580,130 units, 33 percent of output for the same year.

Manufacturing centers
• About 48 percent of the PBX makers surveyed have factories in mainland China. About 57 percent maintains factories in Taiwan.

• The key production centers in Taiwan are Taipei, Hsinchu and Kaohsiung

• Mainland China makers are located mainly in Guangdong, Shandong, Shanghai and Zhejiang.

• Taiwan's PBX industry is mostly composed of small and medium private enterprises. The traditional PBX market is dominated by players that have been making PBXs for more than 20 years.

• The few Taiwan companies that have moved to mainland China can be found in Guangdong, Shanghai and Jiangsu.

Production
• Aggregate output from surveyed Taiwan makers was 405,810 PBXs in 2004.

• Taiwan's production is estimated to grow by at least 28 percent to exceed 520,180 PBXs in 2005.

• In 2004, aggregate PBX output from profiled mainland China companies totaled 999,878 units.

• Mainland China makers predict a 24 percent growth in 2005 for a total production of 1.24 million units.

Exports
• Taiwan-based makers are estimated to have exported at least 190,188 PBXs in 2004.

• In 2005, Taiwan makers project a 41 percent increase in exports to reach 267,330 units.

• Overseas shipments from mainland China for 2004 were estimated at 212,550 PBXs.

• Mainland makers project a 47 percent growth in 2005 to reach an export volume of 312,800 units.

• Most exported PBXs carry international certifications such as CE, FCC and ETL. Other products are also approved by ETSI, BABT and PTT.

• Asia is the biggest market for PBX systems from Taiwan and mainland China. Major overseas customers include retailers, importers or distributors and telecom operators.

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

Industry overview

The convergence of voice and data communications and the shift to packet switching in network infrastructure worldwide will stimulate otherwise slow PBX manufacturing industries in Taiwan and mainland China. Both supply markets have been specializing in traditional, wired PBX systems, which have long reached maturity and whose market has been experiencing sluggish growth in recent years. In the coming months, makers' efforts to catch up with the thriving IP market worldwide, combined with the growing VoIP and wireless industries across Greater China, will contribute to changing the PBX industry landscape.

Industry figures from In-Stat indicated marginal growth in the PBX market. According to the market research firm, worldwide PBX revenue totaled US$8.5 billion in 2004, declining by 5.8 percent from 2003. Forecasts for 2005 point to worldwide revenue further declining by 1.4 percent to total US$8.38 billion.

However, growth is projected for the IP PBX sector. In-Stat reported that traditional PBX systems represented US$4.75 billion of the total revenue for 2004, accounting for 56 percent of the total. Aggregate revenue from sales of IP PBXs and converged PBXs accounted for the rest. IP PBX revenues were twice that of converged PBXs for the same period, according to In-Stat.

In 2005, IP PBX revenue is expected to grow by 10 percent to reach US$1.38 billion. The projected combined sales from IP PBXs and converged PBXs worth US$4.26 billion are expected to exceed the US$4.12 billion revenue projected from traditional PBXs.

In terms of PBX line shipments, In-Stat predicted that IP PBX line shipments will continue to grow at 28.9 percent compound annual growth rate (CAGR) from 2003 to 2008. There were 19.5 million PBX lines exported in 2004. This is projected to climb to 20 million lines in 2005. However, this growth comes at the expense of traditional PBX line shipments, which will continue to decline at a 15.4 percent CAGR over the same period.

To come up with this sourcing report, a Global Sources research team of market analysts carried out on-site interviews and factory tours of the companies featured herein. Where factory tours or interviews were not feasible, phone surveys were conducted. A total of 14 companies profiled in this report were personally interviewed by the Global Sources team at their headquarters in mainland China and Taiwan.

Aside from company and factory data, all the companies visited supplied information about their product development and manufacturing plans. They provided specifications for their popular export models, which are available here in two formats — one as part of a company profile and another as part of a comprehensive product comparison table.

Taiwan and mainland China supply markets
The PBX manufacturing industries in Taiwan and mainland China mirror worldwide developments. Makers in both supply markets are leaning toward IP PBX systems and are reducing their investments in traditional wired and analog PBXs. R&D, production and export plans revolve mostly around new and emerging PBX trends, especially IP and VoIP.

Samples of supplier profile

Auto Telecom Co. Ltd
Auto Telecom Co. Ltd (ATC) has been designing and manufacturing key telephone systems (KTSs), PBXs and corresponding telephone sets since 1987. It is headquartered in Taipei, Taiwan. Although the company established subsidiary operations in Australia and Indonesia only in 1997, it has been shipping its Hybrex brand of products to Australia since 1989.

ATC registered annual sales worth US$10 million for all products in 2004, with exports accounting for 70 percent. It forecasts sales to increase by 55 percent to US$15.5 million in 2005.

In terms of PBX systems, annual sales in 2004 stood at US$5 million. The company targets it PBX sales in 2005 to grow by 56 percent to US$7.8 million. In terms of the types of buyers served, ATC ships 65 percent of its production to OEM clients, and the remaining 35 percent under its own brands. Its major overseas clients include Doro in Sweden, Denmark, Finland, and Norway; Ericsson in Australia; and Olympia in Southeast Asia. Its own brands include Hybrex and Transtel in the United States, Australia and Indonesia.

ATC ships 70 percent of its output to overseas markets through Hong Kong. Shipments to Australia account for 35 percent of the company's output, Southeast Asia has 25 percent and the United States has 10 percent. Annual export revenue for all of its products in 2004 was US$7 million. The company expects to maintain its export percentage at 70 percent while increasing its total exports in 2005 to about US$10.9 million.

Manufacturing capability
The company has a 4,000sqm, three-storey factory in Shenzhen, Guangdong province. Built in 1996, the factory has the capacity to produce about 10,000 PBXs monthly, with actual monthly production at 5,000 units. All of its output comprises ISDN and analog PBXs.

The factory has 140 workers. ATC obtained ISO:9001 certification in 1993. Its current ISO 9001:2000 certificate was issued by Det Norske Veritas QA Ltd in November 2003.

ATC subcontracts most of its production processes, such as mold- making, plastic-injection, SMT and DIP insertion. The Shenzhen factory handles housing and final assembly, QC and packaging. The company's in-house production flow works in top-down fashion.

Parts and components are transported from the warehouse on the third floor of the factory to the second floor for initial and intermediate assembly. The assembly floor is organized into six lines, divided into telephone systems and telephone handsets. All assembly is done manually, and QC is administered by five workers at each line. The assembled parts are then brought to the first floor of the factory for final assembly, final QC and packaging.

Overall, ATC's production processes can be divided into three production lines: assembly, QC and packaging. The company's QC sampling process adheres to MIL-STD-105D with AQL standards.

With current factory production nearing capacity, ATC is forecasting a small idle capacity margin as it meets buyer orders for the year. It expects monthly output to gradually increase by about 50 percent in 2005 to cope with the increase in demand.

Sample of product gallery

VoIP and IP PBXs Company:Centnet Model name/number:CPBX 9000 Indicated FOB price:US$31 per line Supported line,ISDN, PSTN

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