China Sourcing Reports: Networking Products02 Dec 2011 • by Natalie Aster
China suppliers of networking products continue to bolster output, anticipating climbing demand from the strong Wi-Fi equipment market. They expect a 10 percent increase in yield by year-end.
To match the trend for high-speed wireless connection, companies sustain the release of 802.11n units. In the access point, router and WLAN card segments, the standard has secured mainstream position. Enterprises offering the second are expanding to 802.11n+. Variants based on earlier Wi-Fi protocols remain in the selection as additional option.
The server segment is also shifting to cord-free technology as makers develop 4-port network units based on 802.11b/g. Wired products will keep the lead in the supply of printer and network video variants.
Suppliers of Ethernet and KVM switches are exploring upmarket opportunities while holding on to traditional bases.
The report “China Sourcing Reports: Networking Products” by Global Sources covers the major products of China’s networking products industry, namely access points, routers, WLAN cards, servers, and Ethernet and KVM switches. For each category, details about the different types offered, their common features and price determinants are provided.
- Most surveyed China suppliers plan to reduce prices to counter stiff competition. The majority will keep the adjustment at less than 5 percent to stay buoyant. Others, however, are increasing quotes to counter rising costs.
- The respondents are unanimous on better exports, with 56 percent expecting to surpass the previous year’s performance by more than 20 percent.
- To bolster sales, a number of suppliers will boost shipments to established destinations North America and the EU. Others plan to break into emerging markets such as the Middle East and the rest of Europe.
- Indicative of the wireless direction, cord-free access points now represent more than 70 and 80 percent of China’s total production and exports for the category.
- Counterparts in the router sector, specifically those based on 802.11n, are projected to form 60 percent of total output by year-end. Compliant WLAN cards already own an 80 percent share of yield.
- Some makers of KVM switches are venturing into IP-based units, which are an emerging category. Those in the Ethernet line are boosting Gigabit models, with a few major players offering 10 Gigabit variants.
- Despite positive projections for Ethernet switches, some companies foresee the category’s eventual decline due to falling demand from the public sector.
China Sourcing Reports: Networking Products
Published: October 2011
Price: US$ 450.00
Report Sample Abstract
Supplier profiles: Dongguan Kexian Technology Co. Ltd
Dongguan Kexian derives 88 percent of sales from networking products. The line, which includes access points, gateways, routers, cards, adapters and ADSL modems, generated $7 million in 2010, with $6 million coming from exports.
The maker anticipates the latter to climb by more than 20 percent in coming months. It will boost marketing presence in the Middle East, which takes up 40 percent of overseas shipments. The other destinations are Europe, North and South America, Africa and the Asia-Pacific region.
Despite stiff competition, Dongguan Kexian will increase export prices by 5 to 10 percent in the months ahead. The company also plans to raise capital expenditure by more than 50 percent.
More information can be found in the report “China Sourcing Reports: Networking Products” by Global Sources.
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