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China's Consumer Electronics Industry Growing

by August 25, 2004

HONG KONG, August 26 - Global Sources Ltd. today released its Consumer Electronics Outlook: China annual report which 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 is published by the company's China-based electronics publications, Electronic Engineering Times-China (EE Times-China) and Electronics Supply & Manufacturing-China (ESM-China). It 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.

Mark A. Saunderson, publisher of EE Times-China and ESM-China, said: "China's consumer electronics industry is expected to post $49.6 billion in sales revenue this year, growing by more than 20 percent annually to reach $94 billion in 2007. Manufacturers are shifting to high-end products to differentiate themselves from the low-end competition, and their integrated circuits (IC) consumption demonstrates this. 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.

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.

"In the near and medium-term, China will continue to rely on imported ICs, particularly for high-end products, as local design capability has yet to achieve this level of expertise," Saunderson said. "This year, China will import 94 percent of its IC requirements, and because of this dependence, China's dynamic electronics industry will continue to present opportunities for international technology vendors."

Strong Growth in IC Design Industry

The Consumer Electronics Outlook: China report also cites the growing strength of China's IC design industry. China now has more than 463 design houses and the trend is towards 0.25 micron and finer processing technologies. It is expected that output of locally designed ICs will grow by 37 percent annually from 2003 to 2007.

The report is the first of a three-part series focusing on the China electronics industry. It is based on field research and in-person interviews conducted by editors and staff writers from Global Sources publications including EE-Times China, ESM-China and Market Intelligence Reports. It draws on China Customs Statistics, and data from the Ministry of Information and Industry, and other government and industry organizations. 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 US$695 and can be ordered online at www.globalsources.com/CWP .

About Global Sources

Global Sources is a leading business-to-business (B2B) media company that facilitates global trade, with a particular focus on the China market, by providing information to international buyers and integrated marketing services to suppliers.

We deliver content to our communities through our leading network of nine vertical marketplaces and 13 geographic portals, and through magazines, CD- ROMs and private catalogs, as well as China Sourcing Fairs and technical events. Our flagship marketplace, Global Sources Online ( www.globalsources.com ), hosts more marketing and sourcing activity than any other global merchandise trade marketplace.

We serve a growing, independently certified community of more than 413,000 active buyers in over 230 countries and territories. These buyers generate more than 4 million inquiries annually for over 130,000 suppliers through Global Sources Online alone. We offer extensive creative services and export consultation through 150 client service officers in Greater China and other leading supply markets, and through our 700 sales representatives who make approximately 40,000 supplier visits monthly. In mainland China, we have 22 years on-the-ground presence, supported by over 1,000 team members in 44 locations throughout the country.

Global Sources' solutions are based on 33 years as a trade magazine publisher serving the global trade community, 13 years as a trade management software developer, 12 years as manager of trade shows in Asia, and eight years as an online marketplace operator.

Electronic Engineering Times-China and Electronics Supply & Manufacturing- China are published by eMedia Asia Ltd., a joint venture between Global Sources and CMP Media LLC., a leading integrated media company providing essential information and marketing services to the entire technology spectrum. The joint venture is a leading provider of new technology content, in print and online for the 150,000-plus technology specialists that drive the electronics industry in China and Asia. eMedia Asia Ltd. serves this community's ongoing need for the right information, at the right time through its integrated, local-language web networks, premier technical events and industry leading publications - Electronics Supply & Manufacturing-China and Electronic Engineering Times-Asia.

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Clint Deboer was terminated from Audioholics for misconduct on April 4th, 2014. He no longer represents Audioholics in any fashion.

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