Flip down monitors

	The EV-8581F flip down car monitor from mainland China's Everise has an 8.5in TFT LCD monitor with two video inputs and PAL/NTSC auto switching.

DVD, PMP functions enhance product appeal; Cost of LCD panel dictates pricing trends.

New models of flip down and headrest monitors integrate DVD and portable media player functions to enhance product appeal. The latest offerings have USB ports, SD card slots and wireless headphones. They feature high-resolution widescreen displays, come in unique structural configurations with attractive cosmetic designs and are easy to install. Some of the monitors are designed with interchangeable shells that buyers can choose to order for different car types.

The supply of headrest monitors is surpassing flip down monitors given the portable nature of headrest products, although the falling cost of LCD panels is causing price cuts for both. In models without multimedia functions, LCD panels account for 70 to 80 percent of the product cost.

Consistent growth in the in-car entertainment product industry over the past five years has been beneficial to the line in China. In-car entertainment products posted annual growth rates exceeding 10 percent in both supply and revenue. In the in-car TV line alone, suppliers forecast domestic sales to surpass 1 million units by 2009. Among the popular in-car TV products, headrest and standalone car TVs accounted for a slightly higher percentage of the export volume. This positive trend is prompting car monitor makers to form rosy forecasts for the succeeding years, albeit tempered with a slackening of the car electronics industry in 2008, caused partly by the weakening US economy.

North America and Europe remain the major export markets for flip down and headrest car monitors. Suppliers, however, expect demand to increase in emerging markets, such as Russia, the Middle East and India, whose export volumes have steadily grown in the last two years.

Most manufacturers of flip down and headrest car monitors also produce other car entertainment and security products, such as car DVD players, rearview mirror TFT-LCD monitors, sun visor car monitors, car GPS, parking systems and tire pressure monitoring systems.

The flip down and headrest car monitors available from China come with 5.8in to 19in LCD panels. Some products do not integrate media players but provide A/V input ports for DVD/VCD player connection. Suppliers can add media players and multimedia solutions if customers require. Several models integrate TV tuners, OSD, PAL/NTSC auto switch, two video and one audio input interface, games, GPS, infrared (IR) remote controls and wireless earphones.

Standard image resolutions are 800x600 pixels, 1440x234 pixels and 960x234 pixels, and standard brightness rates are 300cd/m², 380cd/m² and 400cd/m².

Currently available products also have multiple video inputs, touchscreen function, iPod compatibility and built-in IR transmitters. Aside from the traditional A/V input and output connectors, the latest flip down and headrest monitors come with new multimedia interfaces such as a USB port; a memory card slot for MS, MMC and SD cards; and input ports for GPS and backing radar connection.

Special attention is given to cosmetic and structural designs, as well as to easy installation. Some companies, such as Shenzhen Dsus Technology Co. Ltd, use genuine German leather as housing material for their headrest car monitors. Dsus’ 760HD series of headrest monitors has LCDs that flips up and down at up to 30 degrees angle. The product’s tube diameter ranges from 10mm to 13mm. The frame distance between the tubes is adjustable, from 120mm to 180mm, to fit various car models. Some models have slot-in mechanisms for A/V disc playback in major formats and anti-shock function. Others have game function and are sometimes bundled with an extra joypad.

To broaden the application range and make aftersales service more efficient, new models are designed with independent headrest housings and electronic circuits.

Other makers produce supplementary products such as zippers for headrest monitors.

	Dsus of mainland China offers the 760HD headrest monitor with 7in LCD panel from AU. The DVD player has dual IR, an FM radio, built-in games, and an SD card and USB reader.

Picture quality tops makers’ product development focus. Makers generally use LCD panels with a good price-to-performance ratio, intending to offer competitively priced, high-quality displays. Panels sized 7in to 10.2in are still the mainstream products, although the supply of panels larger than 10.2in is also on the rise.

A handful of makers highlight the development of fully automatic monitors, wireless systems and all-in-one units. Some makers develop monitors for special cars, although suppliers generally believe that products custom-built for specific car models and all-in-one units are exceptions rather than trends.

Based on the capacity of surveyed companies, midsize and large-scale suppliers have a monthly maximum capacity of 30,000 to 50,000 units for flip down and headrest monitors. The average monthly output ranges from 5,000 to 30,000 units.

There are very few companies exploring capacity expansion at present. Among these is Everise Industries (SZ) Ltd, which is currently planning a new factory in Shenzhen that specializes in flip down and headrest monitor production.

Most manufacturing processes are done in-house, including cosmetic design, PCB layout design, manual insertion, testing, aging, repair and final assembly.

Typical QC tests, such as drop, aging, high/low temperature, shock, humidity, vibration and four-time product checks are conducted throughout the entire production cycle. IQC, IPQC, FQC and OQC processes are carried out in-house. Makers try to maintain a product eligibility rate of 99.5 percent. Some companies also keep defect rates under 0.5 percent

The price of flip down and headrest car monitors is largely dependent on the cost of LCD panels and multimedia capabilities. Panels account for 40 percent and 70 to 80 percent of the total cost of a model with and without multimedia function, respectively.

There has been a decline in the cost of new LCD panels. Makers said it is easier to source better-quality panels now at affordable prices than in 2006 and 2007. This has encouraged makers to use them instead of recycled ones, with AU, Sharp, LG, Innolux and Hanstar among their suppliers. The cost of panels applicable to car monitors has gone down due to oversupply and in view of the declining digital photo frame market. The cost of 7in panels, for instance, has dropped by 300 percent from 2007 levels.

Despite the lower cost of panels, makers’ profits have not improved much due to the higher cost of other raw materials and FOB pricing issues with volume buyers. The costs of hardware, plastic, wire and assembly have increased by 10 to 20 percent. Most of the raw materials, PCBs and some components are sourced from local suppliers.

Volume buyers at times slash down their FOB price offers for car monitors that have been made with higher-priced panels. This creates a misunderstanding between supplier and buyer, with the supplier often giving in to the buyer and settling for lower profits. Suppliers said that the cost of higher-end panels sometimes exceeds the end-product price acceptable to buyers.

Another major price differentiator between flip down and headrest monitor models is the functions, features, cosmetic, housing material and optional accessories, as well as the order quantity and certification.

As of September 2008, the reference FOB price for a 7in headrest car monitor with A/V input and output was $70. Models of this type are compatible with most major A/V formats, support USB and SD cards, and have built-in speakers and earphone plugs.

The lead time for delivery of flip down and headrest monitors for most makers is about two to four weeks. Many manufacturers produce the monitors on an OEM basis. Large companies prefer to market their own brands and actively develop products with value-added features.

The major markets for flip down and headrest car monitors include the US, Japan, Europe, Australia, Southeast Asia and the Middle East. Export volumes to Russia, India and other emerging markets are rising steadily.

Exports account for about 60 to 80 percent of total sales for most suppliers. OEM/ODM orders take up nearly 80 percent of sales. Some makers export their products through overseas brokers. Sales and marketing partnerships with foreign agents and distributors are now common in the car monitor manufacturing industry.

China makers manufacture products with CE, FCC and E-mark approvals and certificates. They accommodate orders for RoHS-compliant and non-compliant models.

One of the major challenges that makers face in exporting car monitors is the copyright or patent issue, particularly for models with built-in DVD players. The yuan-dollar exchange rate is also a perennial challenge.

There are about 20 suppliers of flip down and car headrest monitors in Hong Kong. Suppliers usually introduce the latest functions and features into in-dash electronic devices, and later incorporate these into flip down and headrest products. Many of the advanced components, functionality and connectivity options in electronic entertainment systems are also available in the latest flip down and headrest monitor models.

Headrest monitors have more suppliers than flip down monitors. Suppliers perceive that the former has a wider market because it is more portable. Hence, some headrest monitors are also marketed as tablet DVD players, portable DVD players or portable media players.
Flip down monitors are available in sizes ranging from 7in to more than 10in. Car headrest monitors are available in 5in and larger sizes.

Some flip down monitors are available in 7in, 8in, 9.2in, 10.4in and 15in screens, and mostly support widescreen 16:9 aspect ratio. Basic models have A/V inputs, built-in dome lights and remote controllers. Also offered are models that integrate DVD players compatible with 80mm and 120mm discs and with most popular media formats. Optional value-added features include USB ports, SD/MMC slots, TV tuners and IR transmitters for wireless headphones. Clocks, thermometers and FM tuners are also available.

A number of 7in and 10.2in TFT-LCD flip down monitors have dome lighting, multiple A/V inputs, earphone jack and card-sized remote controllers. Versions with the full features integrate a DVD player, A/V in/out jacks, FM and IR transmitters, an SD card reader, and a USB port. TV tuners, the IR transmitter, USB ports and SD card slots are optional. Some models can be flipped and unfolded, and are convertible into standing or sun visor monitors.

The car industry in South Korea is dominated by small- or midsized sedans, a fact car monitor suppliers have come to heed as they shift from flip down and headrest car monitor production to higher-value in-car A/V systems. Another factor that impacts the product line is the strong domestic demand for in-car navigation devices, which is usuallypackaged with a 5in to 9in display and incorporated withA/V playback, eliminating the need for a separate monitor.Flip down and headrest car monitor makers, however,get a boost from the export market, particularly Europeand the US, where family vans and station wagons are more preferred.

The region has about five in-car monitor suppliers that are engaged in the product line. One company, WiderCorp., has much of its production and development efforts focused on in-car infotainment systems. It markets flip
down and headrest monitors as a minor offering, bundled as a peripheral device to higher-value products as a buyer option. It plans to develop an all-in-one system that adopts telematics.

Wider ships 80 percent of its production output to Europe. It leans more toward producing a complete in-car infotainment product that not only offers A/V playback but also supports navigation information, such as those generated via RDS or Traffic Message Channel technology.

The maker’s NR269D supports a variety of A/V and image formats, including DVD, CD, MP3, VMA, DivX, XviD, WMV, JPG, GIF, BMP and PNG. The product has a 6.95in TFT-LCD screen with 800x480 pixel resolution. It comes with an SD card slot and USB interface, and supports iPod direct control, Bluetooth handsfree calls and photo album function.

Two audio and video I/O ports are available. An external rearview camera connection is optional.