Hidden cameras

	The LM-SPR623 model from Lanmda of China is a spy pen with a video recorder that supports AVI format.

Makers roll out units concealed in commonplace items. Product development unhampered by streamlining.

China manufacturers of hidden and spy cameras are introducing several strategies, including strengthening form factor and external design capability, to revive the sector’s export business, which declined in 2008.

More than 60 percent of the country’s output is shipped overseas as legal restrictions and a modest inland market keep domestic consumption sparse. Europe and North America are the main destinations, followed by the Middle East and Southeast Asia.

The economic slowdown, however, has impacted exports since 2H08 during which average outbound shipments went down 20 to 30 percent. Makers expect the situation to improve by the end of this year, although they continue to save on production costs where possible.

As such, most companies outsource SMT to reduce equipment and factory expenses, although a few midsize and large suppliers perform the process in their own factories to tighten QC.

Makers are also increasingly using public molds to lower related expenses, including investment in design work. Small and midsize companies subcontract mold making and plastic injection to streamline production as well.

Amid these cost-cutting measures, China manufacturers of hidden and spy cameras are shifting product development from simple and conventional models toward units that can be concealed in common everyday items.

Current models of fixed hidden cameras take on various forms, including smoke detectors, water sprinklers, PIR sensors, fasteners, power sockets, clocks and plush toys.

Since these products are used in commercial and professional installations, makers are flexible in carrying out buyers’ requirements.

At Rekeen Electronics Co. Ltd, for example, a series of UFO-shaped hidden cameras can be fitted with client-specified sensors. The resolution, lens form, focal length, housing dimensions and coating are also customized. A built-in infrared light for night vision is optional.

Portable versions are embedded in ID cards, pens, watches, sunglasses and card keys. Together with entertainment spy cameras, these models emphasize multiple functions and easy operation. They come with a built-in DVR and battery and support wireless connection.

	Hong Kong’s Ji Chuan offers the model JC-677P, masquerading as an ordinary sprinkler, which has a 1/3in Sony CCD.

China’s selection can be classified under professional fixed hidden, and portable spy or entertainment cameras. The first type usually comes from CCTV surveillance companies. Suppliers of nontraditional surveillance gadgets or makers of consumer electronics, on the other hand, produce portable versions for spying and entertainment.

Professional-level fixed hidden cameras use 1/3 or 1/4in color CCDs and taper pinhole lenses. Images are displayed with a resolution of 380 to 530 TVL and can be seen at a minimum illumination of 0.5 to 1lux. Shutter speeds range from 1/50 to 1/120s. Most products have more than 48dB S/N ratio and automatic white balance.

CCD sensors are purchased from Sony and Sharp, and DSP chips from NextChip and first two companies.

Despite inhibitive costs, Sony’s solutions are preferred for mission-critical systems because of their performance.

Less-expensive components from Sharp, meanwhile, are adopted in midrange products. DSP chips meet minimum operating requirements, with makers directing R&D toward maximizing its price-to-performance ratio.

Taper pinhole lenses are sourced from domestic providers. Focal length is between 2.8 to 12mm, but this and other specifications such as aperture and field of view can be customized.

Portable spy and entertainment cameras adopt CMOS modules typically with a 0.3 to 3MP resolution, integrated lens, 60 to 90-degree angle and minimum illumination of 1.5lux. CMOS solutions have lower power consumption and more compact designs and cost less than CCDs.

Most companies use camera modules instead of individual CMOS sensors and lenses, sourcing the components domestically or from Taiwan. Among the local providers are Asia Optical and Genius Electronic.

Aside from external and structural design, which will be the line's product development focus in coming years, several other functions are turning into trends.

More new models, for example, have built-in DVRs that provide video and audio recording. Units adopt MPEG-4 for video compression and MP3 for audio. Recording resolution is CIF to VGA at 15 or 30fps. DVR solutions used in mainstream products are sourced from local multimedia IC designers such as Anyka.

The bulk of designs have built-in 512MB to 8GB memory. Some models also support memory extension via an SD, miniSD or microSD card. Users can also download the recorded video file to a computer via USB.

Lanmda (HK) Industrial Ltd's model LM-W610 wristwatch spy camera includes a DVR. Its CMOS camera has 300,000 pixels, a maximum recording resolution of 640x480, 512MB to 8GB memory, lithium battery that supports 2hr continuous operation and USB 2.0 interface. The camera is hidden under the dial plate and is activated via a push-button. Lanmda offers various housing styles.

Wireless connection is another important trend as helps keep the camera concealed. Mainstream models utilize analog connection by using RF technology and FM demodulation on the 1.2, 1.8 or 2.4GHz band. The effective transmission distance is within 15 to 50m. A typical wireless kit includes several hidden or spy cameras, and a receiver.

A few advanced models support multichannel selection to prevent signal interference. To enhance the functionality, some companies place the DVR and LCD screen in the wireless receiver.

Form, functionality and image sensor determine prices. Low-end models that are the size of a stick of gum, and with a built-in DVR, battery and 300,000-pixel CMOS start at $20.

Midrange cameras with 1.3 to 3MP CMOS, a built-in DVR and battery are quoted at $30 to $40.

Products that adopt a 1/3 or 1/4in CCD and feature 420 to 520 TVL resolution are considered high end and are between $40 and $50.

Makers predict that prices will remain stable in coming months although the cost of some key components has increased.

Hidden and spy models account for about 5 percent of China’s total production of CCTV cameras. The supplier base has close to 500 companies, mostly small and midsize makers with fewer than 100 workers and annual sales below $5 million. The large industry players employ more than 300 people, achieving higher than $10 million in sales each year.

Guangdong province is the biggest manufacturing hub in China, producing 80 to 90 percent of the country’s total output of hidden and spy cameras.

Shenzhen, in particular, boasts a mature industrial chain that includes designers, software developers, EMS and solution providers, and mold making and plastic-injection subcontractors. Because of this, product development and manufacturing periods are shorter for makers in this city compared with suppliers in other areas.

In addition, Shenzhen’s efficient transportation network, active trading ports and location contribute to its strength as a production center.

Professional security product manufacturers, which comprise about 75 percent of suppliers, form the sector’s backbone. The group’s experience and varied range reinforce their dominant position in the industry.

The line has also attracted some consumer electronics companies. They are developing models that suit the requirements of their core market such as cameras in clock, watch or plush toy designs.

The majority does not offer hidden and spy cameras as a main product. Featured company Lanmda (HK) Industrial Ltd is one of the few who do.

In-house manufacturing facilities and production processes are the main differentiators of makers. Companies with a monthly capacity of more than 100,000 sets are considered large-scale and those with fewer than 20,000 sets are small.

China makers carry ISO 9001:2000 certification and ensure that products comply with CE, FCC and RoHS requirements. QC tests include vibration, humidity and 24 to 48-hour aging at a temperature of more than 50 C.