HTPC cases

	The Nova P22 from Taiwan’s AsusTek is a compact HTPC that features 802.11n and built-in hi-fi speaker.

New releases come in smaller form factors, but pack surround sound, HDMI, card readers and wireless capability.

Taiwan’s bustling home theater PC (HTPC) industry is creating feature-rich models in smaller form factors designed to suit home A/V entertainment requirements. The product continues to be positioned at the high end of the PC market. Despite HTPC’s small share of the entire PC industry—largely due to the high price—suppliers in Taiwan have strong market growth projections for the
years ahead.

The rising penetration of LCD TVs of the home market and the availability of digital content and digital interfaces to support content and applications will help boost Taiwan’s HTPC market. The fast growth of HDTV and IPTV will also support this line.

Generally regarded as living-room PCs, HTPCs from Taiwan are being equipped with multimedia features different from standard personal or commercial PCs. Most models are designed to work with LCD TVs for a better multimedia experience. Many makers integrate HDMI support, surround sound capabilities, multiple card readers and even wireless technologies into their new releases.

In mainland China, the supply market for HTPCs has been experiencing sluggish growth. High prices have hindered user adoption, and technology and investment requirements on the supplier side are discouraging many companies to actively pursue this product line. However, makers have large production capacity for HTPCs and continue to watch market developments in order to be able to engage the line as soon as demand picks up.

All-in-one PCs from mainland China makers support infotainment applications. Many models feature up to 250GB SATA hard disk drives (HDDs), integrated graphics cards and multiple card readers.

Many HTPC makers in Taiwan have positive forecasts for the HTPC market in the years ahead. Some noted an uptick in their exports and sales this year, and expect this trend to continue in the coming months.

Shuttle Inc., which started producing multimedia PCs in 2004, reported a 30 percent increase in exports in 2007. The company estimates another 30 percent rise in shipments this year. The company’s factory in Taoyuan, Taiwan has a monthly production capacity of about 30,000 units. Its monthly shipment of HTPCs reached 20,000 units in 2007.

Micro-Star International Co. Ltd (MSI) started producing HTPCs in 2003 and now ships about 2,000 units a month. The company’s factory is in Bao’an in Shenzhen, Guangdong, mainland China. MSI has a rosy outlook for HTPCs: It expects a 30 percent growth in 2008.

AsusTek Computer Inc. joined the HTPC line in 2007 and has bullish projections for the product, expecting a 100 percent growth in the next few years. Its factory can produce 1.4 million units annually. The company aims to ship 500,000 to 700,000 HTPCs in 2008, and to take 10 percent of the worldwide market during the same year. Most of AsusTek’s products carry its own brand, which business accounts for about 90 percent of total sales.

Most makers in Taiwan sell the majority of their products under their own brand names. They sell their HTPCs through distributors and local agents, or through their own branch offices.

HTPCs created a lot of buzz several years ago, and large players such as Lenovo Group Ltd, Hedy Holding Co. Ltd and Founder Technology Group Corp. invested in the product. However, adoption has been slow that many makers have quit the line. Hedy, which is one of the leading manufacturers of PCs and PC peripherals on the mainland, started developing HTPCs in late 2004 and used to invest about 10 percent of its revenue in R&D. Hedy has stopped product development in HTPC due to the slow market growth.

There are only about four or five makers of HTPCs in mainland China, most of which are located in Guangdong.The line accounts for only about 0.5 percent of the total output of PCs in mainland China. Some makers are optimistic that further slides in product prices and more aggressive marketing strategies will spur the global market for HTPCs, but some companies see the line persisting only for niche markets.

Makers agree HTPCs enable efficient use of space at home due to the integration of multiple functions into a small box. Yet, price and technology issues outweigh this benefit and continue to delay makers’ investments in the product line.

Prices of HTPCs range from $700 to $850 each. Some companies have slashed their prices to offer more competitive export quotes, but pricing remains one of the factors that slow the growth of the line.

Continued developments in PC technology and the popularity of IP networks are also issues to contend with. Ordinary PCs can now be upgraded to function as a home theater device. With prices of components and peripherals declining for the last two to three years, more users are opting to invest in low-cost peripherals and accessories to beef up their existing home PCs. In terms of applications, the popularity of watching TV shows and movies over the Internet is also narrowing the benefits of HTPCs.

Further, HTPCs’ small form factor creates challenges in terms of upgrading or replacing components. The small size and the integration involved both discourage the growth of the aftersales side of the market. Moreover, the need for integration requires makers to invest in new molds, which means additional cost.

Nevertheless, mainland China makers have large production capacity for HTPCs, although they have yet to increase their volume substantially in the absence of large orders. Hedy’s monthly production capacity for HTPCs can reach about 25,000 units. And yet, the company has yet to resume producing HTPCs.

Hasee Computer Co. Ltd has a monthly production capacity of about 50,000 units. Its monthly output is only about 1,000 HTPCs. Shenzhen All Win (AWPC) Technology Co. Ltd can produce about 10,000 units monthly, but its average monthly output is just 5 percent of this capacity at about 500 units.

Most of the new models from Taiwan support multiple DVD players or Blu-ray/HD DVD players. Makers agree that HDMI support and smaller form factors are strong trends this year.

Generally, models from Taiwan feature 5.1ch or 7.1ch surround sound, Windows Media Center Edition OS, HDMI, 802.11b/g, multiple card readers and DVD players.

AsusTek defines its HTPCs as living-room PCs. The products are designed for home use and support high-end A/V entertainment. The company sees TV tuners as strong value added, but its major R&D plans will revolve around small form factors, silent performance and Blu-ray/HD DVD support. AsusTek has a patented thermal design to ensure better heat dissipation and low noise at 25dB.

Shuttle is concentrating on the integration of digital A/V technologies and other high-end features in its new releases. Shuttle has in-house design capability for small and customizable motherboards for mini HTPCs.

The SG33G5M from Shuttle uses the Intel G33 Express chipset to support the latest Core 2 Duo and the upcoming 45nm processor. The model also features Dolby Digital Live and DTS Connect to offer 7.1ch surround sound. It supports HDMI interface for 1080p high-resolution audio and video. It also features fingerprint and USB Speed-Link for secure and easy data transfer between two PCs.

MSI positions its HTPCs as combination multimedia PCs and high-end DVD players. According to the company, its HTPCs are designed to support TiVo, HDMI, Blu-ray or HD DVD playback, digital amplifier and H.264 format to offer high-quality audio and video.

MSI emphasizes external ID and multimedia features. Its HTPCs feature IDs similar to those of consumer electronics products, with most models resembling DVD players. HTPCs from MSI measure 17in wide, same as most DVD players, as this is regarded as the right size for home installation or setup. However, MSI can offer models in 3L to 14L versions.

Besides design and multimedia features, MSI is also working to improve heat dissipation and noise levels in its products. MSI uses refrigerant and fans to cool its HTPC systems effectively. It has no plans to release models with built-in TV tuners, which the company sees as irrelevant when HTPCs work with LCD TVs.

	The APC-320A from mainland China’s AWPC has a 32in TFT LCD and Intel 775 processor or AMD AM2 CPU.

Mainland China makers market their HTPCs as all-in-one PCs that combine PC and LCD TV features, complemented by multimedia functions and information services. Mainstream models typically come with 26in to 32in TFT-LCD monitors, which can also be used as separate TV sets.

HTPCs from the mainland generally feature Intel Pentium Dual Core T2130 1.86GB CPUs, 2GB DDR2, memory, 80GB to 250GB SATA HDDs, Intel 940GML GMA950 (integrated) graphics cards, wireless keyboards and mice. Some models integrate 9-in-1 card readers.

Hasee, one of the leading computer manufactures in mainland China, has released one HTPC model. The Hasee-T200R features a 26in WXGA LCD screen, Intel Pentium Dual Core T2130 1.86GB CPU, 2GB DDR2 memory, 250GB SATA HDD, DVD-RW optical disk drive, Intel 940GML GMA950 graphics card, wireless keyboard, mouse, 9-in-1 card reader and 10/100Mbps LAN. AWPC, which started developing HTPCs in 2006, released its first model at the end of that year. The unit features a Samsung TFT-LCD monitor, with sizes varying from 15in, 19in, 22in, 32in to 40in. It has an Intel 775 processor or AMD AM2 CPU and a 4/2 DDR2 slot for up to 4GB memory. It supports standard a 3.5in Ultra-ATA 133 hard disk with up to 320GB, slim CD-ROM/DVD/DVD combo DVD-RW optical drive and on-board graphics card. It also has an on-board 10/100/1000Mbps LAN card and comes with an optical mouse and a wireless keyboard.

HTPC has become AWPC’s major product line. The company supplies DIY components, a strategy that allows it to lower cost and easily upgrade components.