Digital models seen as next big trend

	The model T8 dual-SIM quadband GSM phone from APS has an analog TV tuner, a 2.8in touchscreen, 3.2MP camera and built-in 8 to 16GB memory.

Analog TV handsets will retain supply lead but digital rivals will gain more ground.

China makers of TV mobile phones are directing product development toward digital systems, which are forecast to become the next major trend even as analog remains the dominant technology.

High manufacturing costs and power consumption and the lack of standards hampered the takeoff of such handsets, with only a handful of players pursuing the line as of 1Q09. As adoption picks up, however, more players are joining the bandwagon.

About 20 to 30 percent of local white-box mobile phone suppliers are either preparing to launch their own models orhave already done so. For the domestic market, CMMB is the standard. Outbound deliveries adopt DVB-T and ISDB-T.

The availability of an integrated solution that can support both standards is expected to speed up the release of compliant units.

Homegrown IC provider Rockchip has launched a platform based on its RK2718B-M chip.

DVB-T is increasingly becoming popular in Russia, Southeast Asia and Australia, while ISDB-T is widely deployed in Japan and South America. One of the advantages of the former is its compatibility with existing networks, thereby eliminating the need for additional investment. Furthermore, the availability of chips with lower power consumption is encouraging product development.

Some high-end GSM phone manufacturers are focusing on DVB-T. Overall exports of devices supporting this standard, including portable media players, GPS, in-vehicle media systems and handsets, reached 30 million last year.

Major digital TV chip provider Hangzhou Nationalchip forecast outbound shipments this year will be about the same.

In contrast, DVB-H and MediaFLO are slowly losing ground partly because of the decreasing number of users. The former, although boasting lower power consumption than DVB-T, requires new investment in network equipment and user fees.

Makers are riding on the 2015 deadline for analog broadcasting shutdown to spur growth in digital TV mobile phones. Many hope to leverage the South Africa World Cup 2010 in promoting digital TV handsets supporting the standard.

Despite increasing emphasis on digital capability, however, analog TV handsets will remain staple. The latter has a lower capital and technology threshold. Projections from market research firm Forward Concepts indicate more than 88 percent of the world’s population will continue to receive programs via analog channels. In-Stat estimates current mobile subscribers to such broadcasts at 54 million, and this will grow to 300 million by 2013.

Makers approximate China’s output of analog TV handsets at 30 million to 40 million. Shanghai Telegent Systems, which developed ICs for such devices, has sold 50 million units as of 3Q09.

	The model Zoho E75 analog TV phone from Shenzhen Nandan has a 2.8in, 240x320-pixel QVGA touchscreen and a 2MP camera.

Low-end mobile TV phones feature 2 to 2.4in 260,000-color touchscreen TFT LCDs with a resolution of 240x320 pixels or QVGA. These have analog TV, a 300,000-pixel camera, an FM radio, Bluetooth 2.0 and GPRS/WAP. Dual-SIM and -standby are supported, as are MP3 and MPEG-4 playback. Prices range from $30 to $50.

Midrange units deliver analog TV. Such models have 2.2 to 3.2in TFT screens with QVGA resolution, 1.3 or 2MP cameras and FM radios. They read MP3 and MPEG-4 formats, and boast dual-SIM/standby, Bluetooth 2.0 and GPRS/WAP. Some incorporate two cameras and enable 800x480 pixels at WVGA. Quotes are between $65 and $80.

Priced from $95 to $140, high-end TV mobile phones support DVT-T, ISDB-T or CMMB. These sport 2.4 to 3.5in TFT displays capable of 240x320 and 800x480-pixel resolution.

The other features are 1.3 to 3MP camera, MP3/MPEG-4 player, FM radio, Bluetooth 2.0 or 2.1, 128MB RAM+64MB ROM, GPRS and WAP. These can be single- or dual-SIM with standby function. Several units incorporate a G-sensor, Wi-Fi and Java.

Oteda Industrial Co. Ltd’s K200 model is a full touchscreen mobile phone supporting DVB-T and ISDB-T. Priced at about $100, it enables dual-SIM/standby and Wi-Fi. The maker plans to launch two more variants.

Upcoming releases will incorporate full touchscreen, G-sensor, GPS and Wi-Fi. Besides digital TV, manufacturers will be emphasizing the integration of MEMS gyroscope and optical finger navigation.

Domestic makers mainly adopt MediaTek’s MT6225, MT6227 and MT6228, and Spreadtrum’s SC6600 series and SC6800D. For the analog TV solution, enterprises source from Shanghai Telegent, currently the only provider for China-made TV mobile phones. The company’s TLG100gc-ca

model, which costs $6 to $7, incorporates a tuner, demodulator and decoder. It supports PAL/NTSC and receives TV signal and FM broadcasting at 50 to 800MHz worldwide. The overall power consumption does not exceed 250mW.

Shanghai Telegent’s model TLG1121 chip, released in 1Q10, is said to be the first such solution adopting the 65nm process. It works with NTSC, PAL and SECAM, and promises a 25 percent reduction in size and power consumption than previous ICs. It also delivers stable signal and clear viewing at 430km/h.

Rockchip, MStar from Taiwan and DiBcom of France are the other major chip providers.

	Shenzhen E-techco’s model DVB-T TV mobile phone supports 850, 900, 1,800 and 1,900MHz GSM frequencies. It has a 2.4in, 320x240-pixel touchscreen TFT LCD.

China has more than 1,000 mobile phone makers, all of which offer TV handsets. Ninety percent of them are OEM and ODM suppliers, and the rest foreign-invested enterprises. Motorola and Samsung have manufacturing facilities in Tianjin. Nokia and Sony Ericsson both operate in Beijing.

More than 90 percent of operations are small and midrange companies averaging 3,000 to 50,000 units in monthly output. They usually subcontract mold tooling, plastic injection and SMT.

Some engage partner factories for all manufacturing processes and conduct only R&D and marketing.

Operations with an average monthly output exceeding 100,000 units can typically handle SMT. Solutions are usually bought from design houses. In general, the cost of mold making is $6,700 per model.

Production involves SMT, two-way soldering, final assembly and QC. The last covers aging, high and low temperature, button, humidity and drop tests. The key materials and components include LCD, chipset, camera module, flash memory and antenna.

Nearly all Hong Kong makers of mobile phones offer analog TV-capable models. The type dominates most suppliers’ lineups and is regarded as one of their best-selling products.

In 2009, the territory shipped 71 million handsets overseas worth $5 billion. Deliveries increased by 10 percent despite the double-digit decline in exports of other consumer electronics.

Competition from mainland China suppliers, however, is squeezing profit margins. To remain afloat, local makers are exploring new markets not yet saturated with low-cost units and boosting R&D for high-value products such as smartphones.

Many offer imitations and in-house designs. The former boasts strong market recognition but is faced with tightening competition.

Greater differentiation is achieved in the latter models, which can have more flexible prices.

QWERTY, bar, flip and open notebook-resembling styles have been released. The first kind typically comes with a trackball, 2.4 to 2.6in display and optional touchscreen.

Analog TV mobile phones from Hong Kong integrate a 2 to 3.2in screen, dual SIMs, single or two cameras, Bluetooth, a microSD slot, media player, FM radio and built-in games. These can be dual-, tri- or quadband. Some combine dual-standby, touch panels, G-sensors and Wi-Fi. The MTK platform is widely adopted.

Makers are adding value through an LED torch, voice changer, dual microSD slots and shake function for changing music or video tracks.

Charging is made convenient through USB. Some models work with compatible branded batteries.

Hong Kong suppliers are strengthening QC to avoid safety issues hounding low-cost, mainland China-made handsets such as exploding batteries.

Microtech Technology Co. Ltd designs and manufacturers LCD modules but also offers finished consumer electronics, including TV mobile phones.

Its dual-band M812 model is a slim unit with dedicated music player keys, Bluetooth and dual cameras.

JSR Ltd specializes in entry-level to high-end handsets, smartphones and GPS trackers.

The maker supplies both GSM and CDMA versions in bar shapes with large screens and QWERTY keypads.

The company’s model T11 GSM dual-SIM phone has a microSD slot, 2.4 or 2.2in LCD, 2MP camera, Wi-Fi and Bluetooth. Analog TV is optional.

Product development among Taiwan TV mobile phone suppliers centers on enabling digital capability. Although analog models will dominate 2010 shipments, many see the former becoming more popular in the next 12 months.

DVB-T is the standard being pursued by many, followed by ISDB-T, DVB-H and CMMB. Because of viewing fees, the last two are forecast to experience sluggish growth.

Mainstream TV handsets run on 2/2.5G with dual-, tri- and quadband GSM 850/900, DCS 1,800 and PCS 1,900MHz. 3G units are predicted to increase in volume in months ahead. These will come in W-CDMA, 3.75G HSUPA and CDMA2000 versions. The first two boast faster data transfer rates, and W-CDMA enjoys the support of China Unicom. The majority of products have 2.4, 2.6, 2.8 and 3in TFT LCDs with QVGA resolution. They combine 1.3 or 2MP cameras, with high-end units delivering 3 to 5MP or 640x480-pixel or VGA resolution. Although so far there is no market demand for versions with 12MP cameras, manufacturers are capable of developing them.

Entry-level models are priced between $60 and $66. These analog TV variants integrate a 2.2, 2.4, or 2.6in QVGA touchscreen, 1.3 or 2MP camera, dual-SIM capability, GSM 850/900/1,800/1,900MHz, MP3/MPEG-4 playback, a video recorder, an FM radio and Bluetooth 2.0.

Units with a 2.6 or 2.8in display, an e-book reader and PC or TV synchronization are $20 more. Variants without handwriting recognition and touchscreen but embedded with analog TV are quoted below $45.

Priced from $75 to $100, midrange versions support digital or analog TV through DVB-T or ISDB-T. Versions capable of the former are above $85.

Regardless of broadcasting technology, midlevel handsets have 2.6, 2.8 or 3in touchscreen LCDs and enable dual-SIM and standby, and dual-, tri- or quadband GSM/GPRS/EDGE at 850, 900, 1,800 or 1,900MHz. These have stereo speakers, 1.3 or 2MP dual cameras, Bluetooth 2.0, an FM radio and MP3/MP4 player.

High-end types support 3G and sport 3in or larger LCDs. Running on Windows Mobile 6.5 OS, such units are equipped with Wi-Fi connectivity, GPS navigation, PDA software or smartphone functionality, and an e-book reader.

Prices start at $120. An upgrade from 1.3 to 5MP camera will increase the quote by 20 percent.

Taiwan manufacturers export their 2.5G TV mobile phones to Southeast Asia, South America and Africa. 3G CDMA2000 handsets are shipped to North America and mainland China, while W-CDMA variants go to Europe. Makers are targeting Japan and Brazil for ISDB-T models.