GPS accessories: GPS adoption sustains growing accessory segment

China's GPS accessories industry remains stable thanks to steady demand from the domestic market. Despite a decline in overseas shipments due to the global economic slowdown, makers are optimistic that the industry still has room for expansion.

Suppliers predict the in-car segment will provide a boost as the GPS technology matures, spurring the adoption of applications such as personal and vehicle tracking.

GPS accessories are sold bundled or as giveaways with personal navigation devices (PNDs) or GPS navigation systems. These include power adapters, in-car power chargers, external antennas, A/V cables, USB cables, car suction mounts, cases, touch pens and LCD screen protectors.

China has more than 1,000 suppliers engaged in GPS accessories, including about 100 companies that offer antennas. Many of them come from the mobile phone accessories segment. Makers take advantage of similarities in manufacturing processes, materials and designs to maximize equipment and expand product range. Some are also suppliers of consumer electronics and PC peripherals.

Car mounts or holders and cases lead the supply of nonelectronic accessories in China. Most of these products come from makers of mobile phone accessories that take advantage of the similar processes and equipment.

Mounts or holders usually support the slim and flexible goose-neck design. Models provide an adjustable viewing angle. Many units also feature a swivel head to allow flexible positioning. They typically have suction cups for installation on the car's dashboard or window.

The products are priced from $1.60 to $2.30 per unit. Models with a more-flexible design have higher quotes.

GPS cases come in different materials and designs such as leather and silica gel. Some models are made of textile, canvas and velvet for more-stylish patterns.

Most makers of silica-gel cases have their own mold-making and plastic-injection machines. According to suppliers, mold making can cost up to $700 for each model. Although they can provide customized products, the majority offers universal-type cases, which saves them production time and costs. Currently, units made of PU, PVC, EVA and genuine leather account for 90 percent of output.

Genuine leather products are considered high-end because of their durability and extensive protection feature. Suppliers put emphasis on the development technique, quality and craftsmanship of such models. They list at $2 to $4 each. Units that use PU, PVC and EVA are $1.50 to $2.

Silica-gel cases are usually designed for 3.5 to 4.5in GPS receivers. Most are water-resistant. They go for $0.50 to $0.60 per unit.

GPS chargers and adapters from China support 5V ± 0.25V output voltage and 10W power output. The products have short-circuit protection. Prices range from $2 to $4.

Suppliers are emphasizing the improvement of their product molds toward better housing designs. They are also enhancing safety by incorporating overcurrent, overvoltage and short-circuit protection.

Other R&D efforts are also being directed at low standby power consumption, increased operating efficiency and miniaturization.

Meanwhile, regardless of the target market, makers of antennas are also developing compact units. They are likewise improving product performance.

Many suppliers offer Wi-Fi and CDMA/GSM antennas, as well as vehicle monitoring solutions based on GPS. Makers expect that automatic vehicle location or car tracking systems will adopt GPS antennas, especially CDMA/GSM and GPS combo units.

Most models support 5 to 15mA current, 1:5:1 VSWR, RHCP polarization, 1.5dB noise configuration, ±5MHz bandwidth and 28 ±2dB typical LNA gain. Products meet the IP67 water resistance standard and are equipped with SMA, SMB or MCX connectors.

A passive antenna is priced at $3. The active type is $3 to $4. CDMA/GSM/GPS combo antennas are $6 to $8.

One of the suppliers interviewed, Jiashan Jinchang Electron Co. Ltd, said the price of antennas has been reduced by 30 to 40 percent since 2H08. The company predicts a slight increase later this year, however, after the cost of metal goes up.

The majority of China's GPS accessory makers joined the line in 2002 and geared up mass production in 2005. Companies have a monthly output of 30,000 to 300,000 units. About 70 percent of exports go to Europe and North America. GPS holders, chargers, cases and antennas are the key export lines.

Hong Kong Wexun Electronic Co. Ltd offers GPS bags, holders and chargers. The company provides OEM and ODM services. It develops universal and customized designs for GPS receivers from Garmin and TomTom.

Hong Kong Wexun can release five new GPS bag models per month and exports to Europe and the US.

Another supplier interviewed, Shenzhen Sunkin Technology, specializes in consumer electronics and GPS products, including accessories. The company leverages its strong R&D capability, providing flexible and customized GPS solutions for vehicle management, personal tracking, and outdoor and leisure activities.

Shenzhen Sunkin offers GPS external antennas, GPS vehicle electronics and cigarette lighter adapters. More than 70 percent of exports go to Europe, Japan and South Asia.

Changzhou Asian Endergonic Electronic Technology Co. Ltd began producing such accessories in 2005 and has since developed 15 models of holders and cushions. Its soft pedestal holder has been awarded a national patent. Ninety-five percent of output is shipped to Europe and North America.

Jiashan Jinchang Electronics Co. Ltd is engaged in the development and production of GPS and GSM antennas. It offers GPS, GSM, Wi-Fi, GPS/GSM, GPS/GSM/FM and GPS/GSM/Wi-Fi antennas, and different kinds of connectors and cable assemblies. It also targets the integration of other navigation systems such as Galileo and Beidou into its upcoming releases.

The supplier churns out 300,000 units per month. It ships 60 percent of output to Europe and the US.

Hong Kong has only a few makers of GPS accessories. This is because the majority prefers to develop and manufacture accessories for mobile phones, iPod players, MP3 players and other consumer electronic devices that have a larger user base than GPS devices. These suppliers also perceive GPS as less likely to be accessorized by their owners.

There are fewer than 10 Hong Kong makers of cases, pouches, bags, mount holders, antennas and alert devices. About 30 companies, meanwhile, produce chargers. These, however, are general-purpose models designed primarily for mobile phones and other portable electronic gadgets, including GPS.

Unlike mobile phone accessories that are used specifically for certain popular brands and models, many of the GPS accessories from Hong Kong have a more-universal usage. For instance, mount holders are compatible with any portable gadget that is narrower than the holder's width range, GPS devices included. This could be as narrow as 35mm to as wide as 136mm. Wide mount holders are sometimes marketed specifically as GPS holders. Specifications may include a flexible pedestal shaft, 180/360-degree rotation and a suction pad for windshield or dashboard mounting.

As most Hong Kong antenna suppliers accept customer specifications, they are also capable of developing GPS antennas.

Shenzhen Sunkin Technology Co.,Ltd
Hong Kong Wexun Electronic Co Ltd
Jiashan Jinchang Electron Co. Ltd
Access Technology Co