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China’s CE Industry Sales To Hit $94 Billion By 2007

Hong Kong – Global Sources estimates in its Consumer Electronics Outlook: China that sales will reach $49.6 billion this year, growing by more than 20 percent annually to reach $94 billion in 2007.

The report indicates strong growth in the consumer electronics industry and that manufacturers are shifting output to high-end products as they move away from price-based competition. The report provides an in-depth analysis of China electronics manufacturing, with sections on key suppliers, eight major product sectors, semiconductor demand and supply, and the technical design challenges facing the industry, Global Sources said.

The company noted that manufacturers are shifting to high-end products to differentiate themselves from the low-end competition, and their integrated circuits (IC) consumption demonstrates the trend. In 2003, unit sales of ICs for digital consumer products grew by more than 22 percent, but ICs for traditional products, such as electronic toys and watches, rose by less than 14 percent.”

The Consumer Electronics Outlook: China report shows that China manufacturers are employing more advanced technologies in eight major product segments: color TVs, DVD players, home theater systems, in-car entertainment, digital still cameras, MP3 players, personal digital assistants (PDAs) and household appliances.

Manufacturers of color TVs are beginning to export LCD and plasma display models and are reducing their emphasis on traditional cathode-ray tube TVs.Companies are investing in the design and production of DVD recorders, the advanced alternative to DVD players.In the home theater sector, manufacturers are exploring Internet connectivity and are integrating hard disks into their product designs, the report noted.

Makers of in-car entertainment are also shifting towards advanced systems that feature LCD screens, digital video playback and surround sound capability. Digital camera manufacturers are upgrading their products with higher resolution – above three million pixels, and MP3 player suppliers are developing hard disk-based designs that offer greater storage capacity. PDAs contain more entertainment functions plus wireless connections to other devices.

The report is the first of a three-part series focusing on the China electronics industry. The second and third reports examining the communications and computer products manufacturing segments, respectively, will be released in the first half of 2005. The Consumer Electronics Outlook: China report is available for $695 and can be ordered online at