Computer Products

802.11n routers are broadening adoption with forays in the consumer electronics segment, threatening to dislodge 802.11b/g.

The broadening adoption of Wi-Fi in telecom, computer and consumer electronic devices is speeding up the shift to wireless in China's networking equipment industry, particularly in the router sector. It is also fueling a rebound in the country's access point segment, which contracted in recent months due to the rise of combination products integrating the AP function.

Makers are edging out handheld configurations to explore the home entertainment and external storage sectors.

China suppliers of HDD portable media players are shifting focus from handheld to desktop confi guration, optimistic of the latter's better chances in the home entertainment and external storage segments. The high cost of hard drives and stability issues that undermine performance have hampered the technology's adoption in the PMP line, pushing makers to abandon it to fl ash-based units. The latter type represents more than 80 percent of local PMP output.

Despite declining global sales volume of desktop PCs in the face of a strengthening portable line, suppliers in China will continue production to serve remaining markets. For the same price, the category offers a practical solution with its better performance than laptops.

In addition, desktop computers are easier and less costly to maintain, making them suitable for enterprise applications, and government and academic organization use. In fact, there is such a requirement to be fi lled in developing economies in the Middle East and Africa, and within China itself.

Adoption of the USB 3.0 specification, particularly in China, is not expected to grow until after a few more years. Some member companies of the USB 3.0 Promoter Group control the technology, launched officially in November 2008, and acceptance in the PC motherboard and card sectors is still slow. This is even more so in China because it has only three or four suppliers providing solutions and chipsets.

China suppliers of industrial computers are focusing on models that fit certain application-specific requirements. This is because such products are highly customized, with types, functions and features dictated largely by buyers' specifications. And with only a few consumers veering toward more powerful CPUs and GPUs, larger LCDs, and high-capacity HDDs or HDMI support, development in the line has been relatively slow.

China suppliers of network media players are mainly engaged in the production of external enclosures. Only about 15 percent of makers offer units with HDDs. Cost concerns, price disadvantage and limited manufacturing capability are the major factors behind this.

Hard drives account for at least 35 percent of the total outlay and incorporating these in network media players is not cost-efficient. As such, companies are not able to compete pricewise because overseas buyers can readily source the HDDs in their countries at lower quotes.