Anticipating orders to pick up in the second half of 2009, China 
suppliers of car MP3 players continue to be aggressive with R&D efforts, focusing still on upscale production.
Usually entailing the introduction of varied add-ons, such an approach is allowing makers to veer away from price-based competition, especially in the low end.
Over the past two years, rivalry in this segment has intensified to a point where several smaller companies have been forced to drop out of the line.
Still, there are around 300 players left in the car MP3 player industry.
Most small and midsize operations conduct general assembly, testing, repair, QC and packaging, outsource electronic components and subcontract mold making, SMT and plastic injection.
Large suppliers, in contrast, carry out the entire manufacturing process in-house. Steps include industrial, packaging and PCB design, metal processing, silk screening or UV painting, small batch and PCB testing, and case assembly.
In line with the industry’s upscale thrust, recent releases have enhanced convenience and audio performance.
Examples of the former include remote control functions and rotating joints that allow users to adjust the position of the device for easier access.
Although 12VDC from the vehicle battery remains the standard power source, some new models can also run on AAA batteries, enabling them to double as portable audio players.
Further, units have wider compatibility as the capability to support WMA, WAV, ASF and Ogg Vorbis files is becoming common. They can be equipped with flash memory of up to 8GB.
Products have high-speed USB 2.0 ports and slots for different card types, including SD and MMC.
CE and E8-certified, the EF296 model from Yifang Digital Technology Co. Ltd, for instance, features line-in and USB host interface.
The unit has an FM transmitter with a frequency range of 87.7 to 88.9MHz and 106.7 to 107.9MHz. It can support 14 channels and 16MB to 4GB of memory. Other specifications are volume, frequency, track and transmission power memory functions, and repeat all and shuffle play modes.
Other than facilitating product and performance differentiation, the emphasis on the upscale selection is addressing copying issues.
Many midsize and large suppliers plan to secure patents for physical and structural designs. They are boosting aesthetics by creating models with unique constructions. This comes amid intense competition among car MP3 players made using common molds.
Under efforts to yield more-visually appealing products, Jenny (China) Technology Co. Ltd used a circular key press plated with 24K gold on the JC512U model. The unit also has a two-color LCD screen, 128MB to 8GB built-in memory, and SD/MMC and USB ports.
The CM3904 model from Kinwei Technology (Hong Kong) Ltd comes in yellow, green or blue and has an LED display that indicates volume, channel and track information.
Most makers expect prices to remain stable or even decrease in the next six months partly because of the relatively stable supply of materials and components.
Car MP3 players with an FM transmitter often go for $2 to $30. Midrange models are between $7 and $15.
With Bluetooth connectivity, 4GB flash memory and a two-color LCD screen, high-end units exceed $15. Versions that support MMC and SD cards and have a USB port, LCD and 8GB memory are priced $20 or more.
Despite slowing orders, Europe and the US will continue to be the line’s primary market. Companies, however, are exploring alternative destinations such as the Middle East and South America, which offer greater growth opportunities.
Strong in the manufacture of portable media players and vehicle electronics, Guangdong province is the primary hub for car MP3 players in China.
Production there benefits from a complete supply chain that includes providers of flash memory, accessories, cable and assembly service.
Further, Guangdong has a developed transportation system that facilitates procurement and delivery.
Most suppliers are located in Guangzhou, Shenzhen and Dongguan. Read more about
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