Stepping up mobile computing device R&D to shore up profits
Makers are stepping up R&D, focusing on models with value-added features.
Shenzhen and Xiamen in Guangdong and Fujian provinces are two important manufacturing centers for mobile computing devices in mainland China. The first hosts almost half of the country’s suppliers in the line and various PC and peripherals makers. Xiamen, meanwhile, has one of the few high-tech zones in the mainland that fuels development and innovation in the IT sector.
Companies in these cities offer all types of portable computing gadgets, including wholesale tablet and ultra-mobile PCs or UMPCs, laptops, wholesale netbooks and mobile Internet devices or MIDs. Aside from off-the-shelf models, they provide customization services covering design and raw materials and components used.
Taiwan-owned enterprises dominate output but local players are confident of retaining their customer base in months ahead. This is because the former emphasizes mass manufacture and accepts mostly large orders, which gives an opportunity for mainland suppliers that allow smaller volumes.
There are currently no available data on the overall mobile computing device yield of Shenzhen and Xiamen. For the laptop segment, mainland customs statistics reveal the cities account for no more than 10 percent of export shipments. The bulk of overseas deliveries come from Shanghai city and Jiangsu province. These areas have the five largest Taiwan-owned ODM and OBM players Compal, Quanta, Wistron, AsusTek and Inventec.
To raise competitiveness, local suppliers are putting a premium on innovation to differentiate their products and in turn gain healthier margins. Some have established large teams that oversee R&D. Xiamen’s Wanlida Group Co. Ltd, for instance, has set up a 520-strong department consisting of software, hardware, mechanical, CAD and test engineers. In less than two years, it was able to release laptops with dual HDDs and screens.
Various makers are emphasizing MIDs and tablet PCs because of rising demand worldwide. A priority in these segments is the integration of mobile phone features such as call and online video streaming in future releases.
Aside from boosting product development, the cities are strengthening infrastructure to facilitate trade and information exchange. The high-speed railway connecting the two areas is set to run on 2H12. It will shorten traveling time to three hours. More on Stepping mobike computing device R&D to shore up profits…