Bluetooth handsfree kits

	The AU500 from mainland China's Austar is a Bluetooth 1.2 Class 2 handfree kit that supports headset and handsfree profiles, and can pair with up to four mobile phones.

Value-added models highlighted as makers boost R&D capability; Bluetooth 2.0 slowly eclipsing Bluetooth 1.2

Maturing technology, decreasing chipset prices, expanded applications and emergence of improved standards, such as Bluetooth 2.0/2.1+EDR, continue to spur growth in the Bluetooth handsfree kit supply markets in mainland China, Taiwan and South Korea. Makers from these regions, even in South Korea's nascent market, project strong sales in the next few years, particularly for car handsfree kits.

Rising adoption of handsfree kits for use inside vehicles is stoking the market for Bluetooth car handsfree kits, which are projected to lead mainstream supply. This year, ABI Research projects that there will be 25 million vehicles worldwide with Bluetooth functionality. The number of cars pre-installed with Bluetooth devices will triple in the next five years, according to IMS Research. Including aftermarket sales, more than 50 million Bluetooth products will be sold in the automotive industry by 2010.

Current-generation Bluetooth handsfree kits support recording, voice dial and full-duplex communication. Most companies are enhancing audio quality through echo and noise cancellation technologies. Many high-end models come with LCD screens to display caller number, as well as volume and battery levels.

As more products are being designed for in-car use, models with FM transmission will become increasingly available in the coming months. Many new releases from the island will also likely have larger LCD panels.

More new models will also support Bluetooth 2.0, which is fast gaining on Bluetooth 1.2. The former standard will be adopted by makers to leverage its multimedia capabilities, which will in turn boost new releases' performance.

Production and export volumes will rise to complement suppliers' product development efforts. At present, the Asia-Pacific region produces more than half of Bluetooth devices worldwide. The region also accounts for more than 50 percent of Bluetooth products that pass the Bluetooth SIG qualification, according to Bluetooth Special Interest Group (SIG) Inc.

In terms of car handsfree kits, mainland China produces an estimated 50 percent of the world's supply of Bluetooth car handsfree kits. Taiwan suppliers are starting to expand their market reach by establishing partnerships with more car companies. Many suppliers on the island are expected to invest in pre-installed Bluetooth car handsfree kits.

South Korea's young Bluetooth handsfree kit market is likewise getting in on the game, with makers keen on Bluetooth 2.0 and offering models with caller ID and solar power. The opening by the Bluetooth SIG of an office in Seoul in February this year is expected to give the market a boost and enable new entrants in to obtain exposure to new information on the technology and standards.

To brace themselves for tighter competition, makers are stepping up to more advanced technologies and improving product quality. This year, interviewed makers plan to develop value-added Bluetooth products that integrate recording, voice dial, caller ID display, enhanced audio performance and FM transmission for car stereo.

Bluetooth car handsfree kits from mainland China typically feature built-in speakers. Some products also use FM signal to transmit to the car radio. The car kits can be mounted on the car's sun visor or rearview mirrors.

Mainland China's Austar Technology (Hangzhou) Co. Ltd plans to release two compact Bluetooth car handsfree kits that integrate FM transmitters in 2008. Austar was established in 2005 and currently supplies Bluetooth handsfree kits, modules, mice and stereo speakers.

Most of the interviewed companies in mainland China use CSR chipsets for their Bluetooth car handsfree kits. CSR's BlueCore4, which can support Bluetooth 2.0+EDR, is at present the most widely adopted chipset.

Bluetooth car handsfree kits from Hong Kong HongJin Electronics Co. Ltd adopt CSR chipsets. HongJin plans to integrate new functions into its car handsfree kits, such as voice dial.

Bluetooth handsfree kits with built-in FM transmitters currently lead output in Taiwan. Makers supply embedded and portable Bluetooth 1.2 and 2.0 car handsfree kits.

Makers are focusing product development on 2-in-1 Bluetooth FM transmitting car handsfree kits, large LCD panel car kits and pre-installed car kits with RF remote control. Further upgrades will result in units with mini USB jacks on top of the LCD, which can serve as a power source for GPS antennas, PDAs and smart phones.

Taiwan's Jow Tong Technology Co. Ltd has launched the BTF-01, a 2-in-1 Bluetooth 1.2 Class 2 FM transmitting car handsfree kit with a USB port. The model supports FM channels 88.1MHz to 107.9MHz, echo cancellation, noise suppression and full-duplex communication.

Some specially designed portable Bluetooth handsfree kits are also on offer, such as rearview mirror car kits with MP3 playback and FM radio. Some Taiwan suppliers plan to add new products to their Bluetooth devices line, including Bluetooth speakers and Wi-Fi products.

Bluetooth 2.0 and 1.2 car handsfree kits are available in the mainland China, Taiwan and South Korea supply markets, but ongoing product development efforts are placing more emphasis on the former version. Supply of Bluetooth 2.0 has been on an uptrend in recent months.

Some companies in Taiwan are upgrading their existing Bluetooth handsfree kits to 2.0 version. In South Korea, the trend is likewise moving toward Bluetooth 2.0 models to support new applications.

Makers from South Korea offer Bluetooth 1.2 and 2.0 products. Due to its high-speed transmission rate, however, Bluetooth 2.0 devices are increasing in numbers, mostly to support multimedia products such as multimedia mobile phones, MP3 players and portable media players (PMPs). Handsfree kits that are designed for voice and data-use phones adopt Bluetooth 1.2.

In addition to supporting multimedia capability, South Korea suppliers are investing in noise reduction technology, caller ID and external design improvements. Some companies have released models with screens displaying caller information.

Clipcomm Inc. has released the HCC-100, a solar-powered Bluetooth 2.0 car kit that supports 12hr talk time and 700hr standby time. It features voice dial. The HCC-100 automatically charges through solar power during daytime, but can also draw power from a car charger.

Philko International Corp. offers the Lahoya 100. The Bluetooth 2.0 model uses full-duplex transmission DSP to enable noise suppression and echo cancellation. It also features overcharge and discharge protection circuitry.

OpenBrain Technologies Co. Ltd, which entered the Bluetooth industry in 2002, has launched a Bluetooth handsfree kit, the A1, which features an invertible OLED screen. The device is equipped with a chipset from STMicroelectronics, which allows it to automatically search and connect to peripheral Bluetooth devices when the vehicle engine starts. The model won in the International Forum (IF) Product Design Award 2008 in Germany.

OpenBrain plans to develop a new Bluetooth handsfree model that will display the caller's name on its screen. Noise cancellation will continue to be one of the company's R&D priorities in the coming months.

To develop more competitive products, the majority of makers from mainland China and Taiwan subcontract some of the manufacturing processes and concentrate on R&D and product development.

Most of mainland China's more than 100 suppliers of Bluetooth car handsfree kits are small- and medium-scale enterprises. They mainly offer Bluetooth headsets, modules and car handsfree kits. Many of the companies employ less than 500 staff, subcontract SMT and conduct product assembly, programming, testing and QC in-house. The majority of companies are capable of in-house R&D. Some mainland China makers are also members of Bluetooth SIG.

The locus of production is Shenzhen in Guangdong province. Most mainland-owned companies are based in this city. Some of Taiwan's large companies have also built their factories on the mainland. Mobile phone industry giants, such as Nokia and Motorola, have also established manufacturing facilities in mainland China that produce Bluetooth mobile phone accessories.

Mainland China's Xinwei Electronic Co. Ltd Quanzhou started producing Bluetooth products in 2006. The company currently makes Bluetooth headsets, Bluetooth USB dongles and Bluetooth car handsfree kits. It also provides walkie-talkies and cordless phones. Xinwei conducts in-house manufacturing, covering SMT, hardware and software design, mold making and QC.

In Taiwan, about half of the more than 30 makers of Bluetooth handsfree kits have their own manufacturing facilities for in-house production, and the rest subcontract some of the processes to concentrate on product R&D. Most Taiwan suppliers are manufacturers of or design houses for PC peripherals and car accessories.

Some makers of Bluetooth speakers in Taiwan have started providing Bluetooth car handsfree kits. For instance, Juster Co. Ltd recently added handsfree function to its Bluetooth speakers.

As the rate of mobile phone penetration in the worldwide market continues to increase, the majority of makers will continue to concentrate on the international market. SIG reported a 75 percent and 63 percent year-on-year (YoY) growth rate in use of mobile phones supporting Bluetooth in Western Europe and North America, respectively.

Makers from South Korea export to the US, Russia, Germany and other countries in Europe. The products comply with RoHS and carry CE and FCC certificates.

Taiwan makers continue to target their Bluetooth car handsfree kits at Europe, North America and Australia. Jow Tong, for instance, exports 95 percent of its Bluetooth car handsfree kits. The main market is North America, followed by Europe.

More than 80 percent of the Bluetooth handsfree products of the interviewed mainland China makers are exported. The main export markets are Europe and North America, with most buyers coming from the automotive industry. Makers who export their products secure FCC, CE and RoHS certificates for their products.

Kiss Communications Technology Co. Ltd is an experienced Bluetooth device designer and manufacturer. It started making Bluetooth handsfree kits in 2004 and has now expanded into Bluetooth headsets, Bluetooth USB dongles, Bluetooth car kits and Bluetooth GPS. More than 85 percent of Kiss Communications' Bluetooth car handsfree kits are exported. About 90 percent of the company's Bluetooth car handsfree kits are sold to OEM buyers. The rest is released under its own brand, BTK. Europe and the US are its major overseas markets.