PCH INTERNATIONAL, the low profile Irish company which designs sources and supplies consumer electronics products in China for some of the world’s leading brands has launched a new service to help start-ups quickly manufacture products.
PCH Accelerator allows early-stage companies to tap into PCH’s supply chain in China, which covers everything from initial product design to shipping the finished product directly to consumers.
The first fruits of the programme is Lark, a silent waking system which consists of an iPhone app and a band worn while sleeping. The band communicates with the iPhone via Bluetooth and wakes the wearer with gentle vibrations at the designated time.
Lark is stocked in Apple’s network of retail stores, a significant achievement for a new company.
“People are always talking about how easy it is to do start-ups but they are talking about app makers or software companies,” said Liam Casey, chief executive of PCH. “We want to reduce the barriers to entry for people to make hardware.”
He said PCH would take a shareholding in “the low single digits” in companies that join the programme. It charges them a similar fee for the use of its supply chain as it charges its large multinational clients. Applications from companies with venture capital backing are being accepted.
“The start-up is getting the equivalent of a supply chain of a multinational which they couldn’t develop themselves,” said Mr Casey.
He said app developers were looking to differentiate themselves by providing hardware as well. PCH has seen particular interest from companies providing medical, fitness and gaming applications.
Since launching PCH Accelerator at the TechCrunch Disrupt conference in New York earlier this week Mr Casey said his firm had received enquiries from microchip makers, industrial designers and e-commerce retailers looking to partner on creating new products.
It is understood PCH is working towards a floatation of the company before the end of the year, most likely on an Asian stock exchange. Mr Casey said he could not “comment on speculation” but that the company was “looking at all its funding options”.
Earlier this month, PCH secured $4 million (€2.8 million) in funding from Hong Kong-based Fung Capital. Last month, it reported it had revenues $413 million in 2010, generating a pre-tax profit for the year of $16 million, up from $1.5 million in 2009.
