Soaring demand for mobile digital products and power sources has fueled New Energy’s historic growth. New Energy was founded in 2002 with one steel-shell production line. By 2010, the company had become a leading vertically integrated original design manufacturer (ODM) and distributor of lithium ion batteries and backup power systems. The company’s products support iPhones, iPads, Blackberrys and all major brand cell phones, laptops, digital cameras, MP3s, etc.
Why such rapid growth? The answer can be found in the sharply rising demand for new mobile phones and portable electronics in China. Not only are more Chinese consumers buying mobile phones, but current users are also constantly upgrading as new phones with new features are introduced into the market. According to IDC, the world-wide market for smart phones is expected to grow at nearly 15% CAGR from 190 million units in 2010 to 288 million units in 2013.
A mobile-phone battery has a typical usage life of 300 to 500 recharges, which translates to a ratio of 1.8 batteries for the service life of each phone, according to official Chinese statistics. However, battery replacement demand is faster than this when consumers turn in their phones for new models before the normal life of the battery is over. A short product life, combined with a short product innovation cycle, result in rapid product turnover - and plenty of business for battery suppliers.
Currently, lithium ion battery sales in China exceed $4 billion and China has more than 600 million mobile phone subscribers, making it the country with the largest mobile market in the world. The mobile phone market is expected to maintain its growth and current estimates project that handset shipments in China will grow to 259.4 million units and 278.2 million units in 2010 and 2011, respectively.