Albany, NY -- (SBWIRE) -- 12/12/2014 -- Global and China Earphone Industry Report, 2013-2014 focuses on the following:

Earphone overview
Earphone market
Earphone industry
8 branded earphone vendors
13 earphone OEMs

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The report covers headphone, earphone and headset.

Global earphone shipments are estimated to reach 306 million in 2014, up 12.5% year on year, equaling about USD 6.6 billion by value, up 11.9% from a year earlier. The earphone can be divided into Bluetooth communications, sports earphone, OCC (Office Call Center), gaming earphone, HiFi earphone and normal earphone.

The average price of normal earphone is usually no more than USD 2, while high-end earphone could be worth USD 300. Plantronics and GN Netcom concentrate on OCC, Beats focuses on Pop, Skullcandy dominates sports, Turtle Beach (VTB) and Razer on gaming, while Samsung, LG and Motorola pull attention to Bluetooth communications, Logitech devotes to PC, and established companies like Sennheiser and AKG dedicate to HiFi.

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The popularity of high-priced Apple and Samsung's Galaxy revolutionized earphone market. As mobile phone has become the center of the young people's life, they are willing to spend USD 300 to buy premium earphones, which have expanded from small niche market of music lovers to mass market of the youth, attracting many brands into the market.

The emergence of Beats radically changed earphone industry. Since the establishment in 2008, Beats defeated all established earphone companies in less than 10 years to put itself on the throne globally. The success of Beats depends not on acoustic fidelity or high price/performance ratio, but exaggerated bass, overwhelming ads and fancy appearance. This stimulated many companies without acoustic background to swarm into the field.

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The earphones are manufactured in the form of OEM, and 95% of production is concentrated in mainland China, where a large number of earphone OEMs are located. The gross margin of earphone industry is extremely high, above 50% for branded earphone companies, and no less than 10% for manufacturers. Despite a high gross margin, the marketing expenditure of branded earphone companies is very large, as well as channel cost, resulting in a very low operating profit, which makes brand vendors focus on the market and contract the production to earphone manufacturers.

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