Posted by- computerproducts
China continues to host a thriving flash memory card and reader export manufacturing industry despite the financial crisis in the US. To fuel growth, suppliers are redesigning models, improving product performance and cultivating new markets.
SD cards and multiformat card readers are the mainstream supply. Makers are developing youth-oriented designs, multifunction models, large-capacity cards and new interfaces to keep products competitive.
In 2008, makers produced approximately 100 million flash memory cards and 25 million card readers. Seventy percent of card output was exported, giving China a 15 percent share of global supply. Sixty percent of the card reader production was shipped to overseas buyers.
Memory card orders from the US last year went down 50 percent, and those from Europe declined by 15 percent. Demand for card readers also decreased significantly in North America, according to makers, prompting companies to train their eyes on new markets in Europe and Asia.
Facing competition from brands such as Kingston and SanDisk, card makers with stronger production and development capability are constantly looking for ways to attract buyers in target markets. Unlike other industries, this sector has a small profit margin and a very narrow window for function enhancement. In the heightening sales war, small companies with weak manufacturing and product development end up leaving the line.
Makers of card readers have also changed their development roadmaps recently to survive the financial crisis. Although demand from the US has decreased significantly, that from Europe and Asia declined only by 5 to 8 percent. Some companies have shifted exports from Europe to Asia, even though demand in the latter is mostly for low-end models. The bulk of exports are for OEM.
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