Monday, December 7, 2009

The Dullest Bits


Like most people, I have a collection of power adapters. These are the little boxes that sit between the plug and the device, or are sometimes integrated with the plug. Their function in life is to convert high-voltage alternating current from the mains into low-voltage direct current for mobile phones, laptops, iPods, and a host of other electronic gadgets.

Some five billion devices are in use worldwide – about 0.80 devices per person. The world’s largest individual mobile operator is China Mobile with over 500 million mobile phone subscribers. The global growth rate for cell phone ownership is 24%. Assuming only a modest future growth rate of 15% for all worldwide electronic devices – it would translate into 75,000,000 additional power adapters per year.

Historically, the power conversion was made using copper wire. Typically, half the power they drew from the wall, and sometimes as much as 80%, would be lost in conversion. As a result, electricity bills and carbon emissions were both higher than necessary – to the tune of $2 billion a year.

Copper-wired power adapters cost around $2 or less – adapters with integrated circuits run approximately 30% more while having only 20% power loss. In a world and industries of intense price competition, where a fraction of penny is important, it will be highly interesting to see how economics and energy efficiency collide in one of the “dullest bits” of the marketplace.

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