© lavitreiu-dreamstime.com Analysis | March 11, 2014
Consumer electronics market in China tumbles
China’s consumer electronics market declined in 2013 as demand for products like televisions and digital still cameras decelerated, compelling the country’s manufacturers to devise new strategies for growth.
Combined unit shipments for the chief products comprising the overall Chinese consumer electronics industry fell last year to 710.2 million units, down a steep 9 percent from 781.0 million in 2012. “Last year was the third straight year of declining shipments and the second consecutive year of revenue contraction for the Chinese consumer electronics space,” said Horse Liu, principal analyst for the connected home at IHS. “The cessation of government subsidies for consumer electronics products played a major role in the annual decline.” But while shipments will continue to decelerate during the next few years, revenue will continue to be strong. This is because of surging shipments in white goods such as air conditioners and refrigerators. The vigorous white-goods market, in turn, will make up for distressed device segments like digital still cameras and portable media players. Total shipments for the major device categories this year will amount to a projected 674.2 million units. Meanwhile, revenue is forecast to reach $104.8 billion, up from $99.0 billion last year and $98.1 billion in 2012. These findings can be found in the report, “China Consumer Electronics Market Changes Strategies,” from the Consumer Electronics service of IHS. China makers adjust strategies The market for traditional consumer electronics products is maturing in China, much as it is throughout the world. And with the government continuing to push for urbanization and progress coming to the countryside, Chinese OEMs are retooling their growth strategies to keep up with the changing dynamics of domestic demand. For several years the country’s consumer electronics market had relied on subsidies from Beijing to help stimulate demand, encouraging the populace to buy new appliances like televisions. Those subsidies, which ended in May 2013, were primarily targeted at the rural and low-end markets—also the focus of production among Chinese OEMs. Today, makers are adopting a new approach, aggressively developing high-end products to appeal instead to urban consumers with the purchasing power to buoy the domestic consumer electronics industry. “Chinese manufacturers are investing more resources on high-end products carrying expensive prices in order to push up sales revenue, but they must also be careful to adjust production capacity to reduce the risks of overproduction,” Liu observed. Among Chinese OEMs, export-oriented players faced distinct challenges in 2013. An appreciating Chinese currency drove production costs higher, and caution from international buyers led to smaller purchase orders that dented domestic profitability. Winners are few, losers plenty The consumer electronics segments in China that enjoyed shipment gains last year compared to 2012 included liquid-crystal display televisions (LCD TVs), air conditioners, microwave ovens and refrigerators. These markets, along with washing machines, will continue to perform well in 2014. Against this circle of winners was a small group of underperforming segments, plus a larger group of markets that have bled red for many years now. In the first category were segments like set-top boxes, which slipped 9 percent in shipments to approximately 135 million units. These soft segments, however, are forecast to recover in shipments this year as manufacturers improve their products and upsell new features to consumers. For instance, Chinese set-top-box manufacturers will succeed in locating new export markets, IHS believes. A second category of trailing segments last year consisted of devices that have been losing steam for years. These included DVD players, portable music players and digital still cameras. For such devices their peak year of shipments lay long in the past, and no end to their decline is in sight. Shipments of digital still cameras in China by 2017, for example, will have lost 75 percent of their volume compared to 2009; while personal media players during the same period will be down a debilitating 92 percent. Dedicated devices on the whole have lost market share to multipurpose equipment like mobile handsets, which have co-opted their functions and are now preferred by consumers for versatility and popular appeal.
A new production unit for mirror segments for ELT Safran's new production unit at the company's Saint-Benoît facility near Poitiers in central France will make the primary mirror segments for Europe's Extremely Large Telescope (ELT).
A more sustainable approach to semiconductor manufacturing Reuse; that is the key to driving environmental sustainability in global semiconductor manufacturing, says Steven Zhou, CEO of Moov Technologies.
Teslas German venture comes to a halt following court order A court in Germany has ordered the US electric carmaker to stop clearing the forest at its future location outside Berlin.
Marposs expands with acquisition of Stil Precision metrology equipment supplier Marposs has acquired STIL S.A.S., a French company specializing in research, development, production and sales of optical measurement instruments.
Z-AXIS shares good news from 2019 Electronics design and CMS provider Z-AXIS Inc. released 2019 data showing showing robust revenue growth as well as an expansion to its workforce.
Fluidra reaches a deal to acquire Fabtronics Fluidra, a company within the pool and wellness equipment industry, has acquired Australian electronics manufacturer Fabtronics to strengthen its R&D capabilities and to incorporate complete, efficient and cost-effective electronics design and manufacturing solutions.
Garz & Fricke acquires Keith & Koep Hamburg-based Garz & Fricke Group has acquired Keith & Koep GmbH, located in Wuppertal, Germany. With this move, a new powerhouse for ARM-based embedded technologies in Europe has been formed.
ABB to close Hungarian plant – 1’000 jobs lost The power and automation company will close its production facility in Ozd, in northeastern Hungary, by the end of the year.
AT&S' plant Chongqing II back in operation Austrian PCB manufacturer, AT&S, announces that the Plant II at its Chinese location in Chongqing will resume operations.
Arçelik A.Ş files IP lawsuit against LG Arçelik A.S, owners of the Beko and Grundig brands, filed a lawsuit against LG Electronics and its subsidiaries in Germany and France for patent infringement in relation to the unlicensed implementation of the company’s direct drive technology in LG Electronics’ “6 Motion” washing machines.
Seagate unifying workforce at green Fremont site Data storage and management solutions provider Seagate Technology plc is consolidating its San Francisco Bay Area workforce by relocating the company’s Cupertino operations to its existing sustainable Fremont facility.
Coronavirus afflicts more electronic supply chains With the epidemic arriving at dawn of 5G’s mainstream deployment phase, the coronavirus has the potential to disrupt the progress of the next-generation wireless standard, as the crisis slows or threatens to slow the production of key smartphone components, including displays and semiconductors, according to Omdia.
Solid financial improvements for Kitron EMS provider Kitron could show off solid financial improvements, both for the fourth quarter and full year 2019.
Zollner resumes operations in China The German EMS provider Zollner says that its plant in Taicang is reopened. Work continues under strict safety conditions and not to the full extent.
Step-by-Step: Foxconn makes progress in WI Next construction phases of vertical construction, including steel placement, have commenced at Foxconn’s 296,000-square-foot Smart Manufacturing Center at the Wisconn Valley Science and Technology Park (WVSTP).
Eaton boosts offerings with acquisition of PDI Inc. Power management company Eaton has struck a deal to purchase Virginia-based Power Distribution Inc. (PDI), a supplier of mission critical power distribution, static switching, and power monitoring equipment.
BASF to set up cathode active material production in Germany BASF is planning a new battery materials production site in Schwarzheide, Germany, as part of its multi-step investment plan to support the European electric vehicle (EV) value chain.
Shipment from China to GPV sites worldwide has restarted Some of GPV's most important suppliers in China are back in operation which means that important shipment to GPV sites worldwide has restarted. However, not all supplies might be complete, the company says.
Orbit One expands with new test team in Poland The Swedish EMS provider is launching another test team within the group.
Volvo and Geely considers a combined company Volvo Car AB and Geely Automobile Holdings Limited are considering combining their businesses to create a strong global group, which would accelerate financial and technological synergies between the two companies.
Cepton nails major funding from Koito Lidar technology specialist Cepton Technologies Inc. has secured USD 50 million in Series C funding from Koito Manufacturing Co. Ltd., a Tier 1 provider of automotive lighting systems.
RoboSense obtains IATF 16949 certification Automotive LiDAR manufacturer, RoboSense, has obtained the IATF 16949 certificate in the automotive field, which now fully qualifies it to supply to automotive customers.
Manz to deliver assembly lines to Akasol for battery production Manz AG has received an order from the German Akasol AG for assembly lines to produce lithium-ion battery modules. The placing of the order with a total volume of up to EUR 20 million euros has been split into several tranches.
ZKW with new locations in Korea and China The ZKW Group ended 2019 by establishing a branch in Incheon, Korea, near Seoul.Load more news