China remains the world's largest supplier of computer input devices and accounts for 80 percent of global output. Makers are optimistic about keeping their market lead even as the industry lurches from the impact of the economic crisis.

Although the manufacturing base has been thinning as many suppliers exit the line, surviving companies project that rebounding PC sales will stimulate demand for computer input devices. Makers expect trends for wireless products will spur growth in the wireless mouse and keyboard sectors.

China's PC camera sector is currently driven by CMOS-based models. Some makers will continue to offer CCD units, but mostly for the high-end segment. A growing number of companies will be releasing IPenabled versions and camera modules for integration into laptops.

Wired models will likely continue to lead the mouse and keyboard segments. Optical and laser mice currently dominate the supply of wired units, which also includes ball and motion-based versions.

Makers of wireless mice and keyboards generally use 27MHz or 2.4GHz RF. Production of Bluetooth units will rise steadily as chip costs continue to decline.

PC remote controls from China are based mainly on IR and 2.4GHz RF technologies. PC microphones support VoIP, Skype and voice-to-text. The following are some of the key trends we see in China's computer input device industry:

• Although price competition remains the industry's biggest challenge, many companies will be increasing quotes in coming months to compensate for rising production costs and a fluctuating currency exchange rate.
• A few companies will be reducing quotes to boost competitiveness and penetrate price-sensitive markets.
• Makers' product development efforts are centered on adding value through the integration of new features and functions. New mouse models, for instance, incorporate mini USB speaker, laser pointer and remote control functions. Those targeted at gaming applications have more buttons.
• Design trends are pointing toward more compact and stylish housings. Suppliers of keyboards are introducing flexible models that are made of silicone.
• Makers are also improving production efficiency and sustaining development activities to strengthen OEM and ODM capability. A few are promoting their own brands.
• To boost margins, suppliers are expanding both their domestic and overseas sales. While some will continue to ship products to the US, many companies are exploring new markets in the EU, the Asia-Pacific region and the Middle East.

This report covers PC cameras, mice, keyboards, remote controls and microphones. The supplier survey was conducted on manufacturers and traders of these computer input devices.

The Industry Overview section discusses developments in China's supply market amid a shrinking manufacturing base and plummeting sales. It also mentions key trends and product development priorities in coming months.

China has 200 suppliers of keyboards and mice, more than 200 of PC cameras and 150 of remote controls. The majority of companies are operating in Guangdong province. Jiangsu is also an important sourcing center for computer mice and keyboards.