Growth in the computer mouse and keyboard markets is driven primarily by product replacement, which assures a constant market.
The keyboard market is undergoing mass replacement to reflect the trend toward PC-based entertainment. Aside from standard keys, new keyboard models feature built-in hot keys for Media Player or Internet surfing. Some models are also designed to optimize the PC gaming experience.
In the mouse segment, the last few years have seen wired, ball mice give way to the now-mainstream wired optical models with scroll wheels.
Wireless input devices are also slowly eating into the wired mouse and keyboard markets. Although a long way from becoming mainstream products, wireless keyboards and mice have their own defined market base, where product replacement also assures constant demand.
Based on our survey of 57 mainland China makers and 20 Taiwan makers, Global Sources presents the following industry findings:
Production Centers
• The major production centers for mice and keyboards are in Guangdong province, mainland China. Approximately 12 percent and 37 percent of the surveyed makers have factories located in Dongguan and Shenzhen, respectively.
• An overwhelming 90 percent of Taiwan makers have set up factories in Guangdong province. Most of their factories are located in Dongguan, where there are abundant suppliers of raw materials.
Manufacturing Capability
• There are about 180 computer mouse and keyboard makers in mainland China. Their combined output accounted for about 90 percent of global shipments in 2004.
• The surveyed mainland China makers estimate production value of keyboards to increase by 9 percent in 2005 to slightly more than US$1 billion. Production value of mice likewise is expected increase by 9 percent to US$773 million.
• The average capacity of surveyed mainland China makers was nearly 400,000 mice and 300,000 keyboards in H1 2005. Most of the interviewed Taiwan makers have unused capacities in excess of 40 percent on average. As such, they may not increase the number of production lines until more than 80 percent of the capacity is utilized.
Industry Overview
Due to the increasing cost of industry plastic material and intense competition, profit margins of mice and keyboards became thinner in 2004. As a result, some makers decided to quit the line at the end of 2004 and in early 2005. Several others diverted their manufacturing efforts to other product lines.
However, the low technology requirement for mouse and keyboard manufacturing means that more makers will enter this product line once the external environment becomes favorable.
In fact, exports of computer input devices by mainland China makers are expected to climb 15 percent to 491 million units in 2005, according to the China Customs Statistics.
Approximately 90 percent of mouse and keyboard manufacturers are located in Guangdong province, mainly in the cities of Shenzhen, Dongguan and Zhuhai.
Almost all the top Taiwan computer input device makers have set up their factories in mainland China, especially in Guangdong province and Suzhou, Jiangsu province.
Altogether, there are more than 100 Taiwan makers of mice and keyboards. To maintain their proficiency, some makers only focus on in-house keyboard or mouse production. They may have subcontractors to manufacture either keyboards or mice for them.
Mainland China makers, on the other hand, prefer to take less risk by adopting a strategy to diversify their product lineup. Many of them also produce other computer peripherals such as PC cameras, multimedia speakers, PC cases and other digital products. This strategy allows them to share their workforce and equipment like plastic injection machine across different product lines.
Supplier Profile
Adomax Technology Co. Ltd
Established in 1995 in Taipei, Taiwan, Adomax Technology Co. Ltd boasts 10 years' experience in completing OEM projects for Japanese and South Korean companies.
Adomax offers a range of design services for tailor-made products, including computer mice and keyboards, PC cameras and card readers. It also provides aftersales support to its OEM and ODM clients.
Although Adomax plans to expand its product lines beyond computer peripherals, its projected 10 percent growth rate in 2006 will still come from keyboard sales. In 2004, the company achieved US$12.5 million in total sales.
About half of Adomax's keyboard output goes to OEM and ODM buyers and the other half to off-brand sales. The export-oriented company will also promote own Atex brand in the domestic market.
Adomax's main markets are Western Europe and Southeast Asia, where volume buyers are based. Products are shipped via Hong Kong.
The company has also been selling its computer mice under universal packages and OEM brands such as HP, NEC, Fujitsu, Samsung, LG, Justly, Toshiba, and Dixons.
To attract more overseas business, the company attends major trade shows such as Computex, CeBIT and China Sourcing Fair.
Manufacturing Capability
Adomax's monthly production capacity reaches up to 100,000 keyboards, including subcontracted capacity, and 300,000 mice.
Its ISO 9001:2000-certified production facilities are located in Zhaoqing, Guangdong province. The company employs 400 production workers, 14 QC checkers, and five R&D employees.
One facility handles keyboard manufacturing, and the other for card readers, Bluetooth products and PC cameras. The factories have a combined area of 30,000 square meters. It has a total of two SMT lines and four assembly lines.
Of the production processes, only mold-making and PCB-making are outsourced. Subassemblies and SMT are partly subcontracted. The rest - such as plastic injection, subassemblies, final assembly and silkscreen/offset printing and packaging - are conducted in-house.
All this column of information contained in China Sourcing Reports is the result of original, independent and impartial research conducted by Global Sources analysts.
If you'd like to order the China Sourcing Reports, please go to Global Sources website - http://www.globalsources.com, or click here. It is simply and convenient.