Accessory Manufacturers

New mobile phone novelty, accessory models cater to diverse markets

Mobile phone demand continues to drive China’s accessory market. Leather cases, charms and straps are the top sellers.
The strong market performance of mobile phones worldwide continues to fuel China’s mobile phone accessory market. With the global mobile phone user base estimated by ITU at 4 billion as of end-2008, demand for accessories to go with these mobile phones will remain strong.

Production in China, particularly for mobile phone cases, will continue to rise as makers strive to match users’ need to personalize their mobile phones even as they scramble to upgrade to the latest models. Suppliers typically target the low-end to midrange markets, but more are diversifying to high-profit models for high-end and niche markets. Specialized or custom production is widespread and for the large part, buyers dictate the choice of material.

Despite the positive market outlook, however, suppliers are giving out conservative growth forecasts in view of the drop in order volumes in 2008. The US is China’s top export market with about 70 percent export share.

Many companies are reducing their production costs to remain competitive. Makers of silica gel and crystal cases and novelties are planning to purchase their own molding and injection equipment to better manage their cost. The substantial decline in late 2008 in the cost of crude oil is expected to help companies control cost and stabilize their end-product prices.

China is a major production and export base for mobile phone accessories, its supply range covering the entire product spectrum from audio accessories to antennas to housings and cases, and even novelties. Actual figures are not available because these products are not tracked by customs, but mobile phone cases make up a large percentage. <<Read More