Guangdong secures status as main hub of earphones and headphones

The province accounts for more than 70 percent of China’s supplier base for earphones and headphones.

Guangdong province remains the leading sourcing center for earphones and headphones from China, hosting over 70 percent of the more than 350 manufacturers in the line. Supplier clusters are found in Guangzhou, Shenzhen, Dongguan and Huizhou, where products for all price categories are offered.

Wired models continue to dominate output, with entry-level and midrange varieties each accounting for 40 percent of yield. Although the technology is generally mature, most makers are still actively pursuing R&D, concentrating on enabling multifunctionality and improving external designs.

While corded variants take up 60 percent of total production, wireless earphones and headphones are rapidly gaining ground. Suppliers expect more midrange units to roll out in the next 12 months. They also foresee infrared versions exiting the line gradually, and RF and Bluetooth strengthening their foothold on the mainstream market.

Government-initiated programs and policies are boosting the industry in China. To support the key electronics sectors, including mobile phones and components, the administration is embarking on a long-term infrastructure development. The Pearl River Delta region, which comprises Guangdong, will be the centerpiece of this endeavor, aimed at widening business channels for local exporters and reducing delivery time. The province targets the completion of its logistics platform by 2014. It also earmarks $653.13 million for the organization and management of interlinked sea transportation systems by 2020, including the 80km Hong Kong-Macau sea route.

With the expansion of the container berths in the Guangzhou, Shenzhen and Huizhou seaports, the entire investment is projected to reach about $4.23 billion.

Aside from infrastructure building, the government has been enhancing preferential policy packages for China suppliers. It has further reduced the enterprise income taxes for small and midsize operations, including makers of earphones and headphones. It raised the export tax rebate in 2008 to support overseas business. The 17 percent rate has carried many SMEs through the financial crisis. The administration is likewise offering a special income tax rate of 15 percent for foreign-invested enterprises that have been operating in the special export processing zones for more than 10 years.

 The RF868 model from Dongguan Xianghui is a wireless headphone which features 863MHz UHF, 3 channels and a built-in antenna.