The SS-680 from Hong Kong's Bobolink has tower speakers high-gloss or regular PVC finish.

Various cabinet materials, finishes and form factors add interest to selection, keeping up with design trends in digital home setups.

Home theater systems remain synonymous with the 5.1ch technology in mainland China, Hong Kong and Taiwan, representing the bulk of these regions' output.

Being a mature line, product development now mostly centers on external designs covering various speaker cabinet materials, finishes and form factors. Some makers are also exploring new applications by way of mini versions that can also be used with TVs and game consoles—added value from their traditional applications in portable electronics and PCs. Wireless connectivity is another development area but makers are not so keen on further pursuing this high-cost technology, limiting their product launches to a few models pending a more encouraging market response.

For cabinets, makers now also turn to stainless steel and aluminum, in addition to the widely used wood and plastic. Piano paint and metal finishes are still popular, especially as these not only match flat-panel TVs and DVD players but also blend well with house interiors. Form factors continue to lean toward compact, streamlined, space-saving and fashionable designs. All these considerations point toward the growing trend of digital homes.

In terms of audio qualities, the line has reached maturity but the choices remain broad with 80W to 720W models available. In some models, buyers are given a free hand in selecting built-in or external amplifiers, as well as in specifying add-ons.

Prices are as wide-ranging as the product selection. Price movements, however, depend on makers' reaction to competition and costs. Generally, a price increase is forecast due to various region-specific factors such as appreciating currency, power situation, and increasing material and labor costs. Some makers are maintaining their current quotes to keep their customers.

	The W-5011 wireless 5.1ch home theater system from mainland China's Shenzhen Smart has a 2.4GHz wireless transmitter, and built-in Dolby Digital, DTS and Dolby Pro Logic II decoders. It has aluminum speaker cabinets.

A breakthrough showcased at this year's CES is the X3HT, the mainland's first THX-certified home theater system. Developed and produced by Guangzhou HiVi Electrical Appliances Co. Ltd, the model has the X3F or three front channel speakers that each have two 6.5in woofers, two 3in midranges and one 28mm soft dome tweeter. Its X3S or two powered subwoofers have 15in driver units and built-in 260W power amplifiers. The X3HT also has the X3R, two rear surround speakers with a 6.5in woofer and a tweeter each.

Guangzhou HiVi also displayed the Swans 2.3A home theater system at the CES, which features an innovative linear ribbon speaker structure and a 2ch external power amplifier with 1,200W power output.

G-Chantz Audio Co. Ltd offers the SP-760 home theater system consisting of two front speakers, each with a 1in tweeter, two 5in midranges and an 8in woofer; one center speaker with a 1in tweeter and two 5in midranges; two surround speakers, each with a 1in tweeter and a 5in midrange; and a 10in active subwoofer. The model is priced from about $110 to $120, depending on other buyer requirements. G-Chantz is set to launch five new 5.1ch home theater system models in H1 2008. It has an in-house product development team that can introduce two new models per month.

Shenzhen Baoan Fenda Industrial Co. Ltd's YF-2051A is a 5.1ch home theater system consisting of a 50W subwoofer and 5x15W satellite speakers, all in wooden cabinets. The model features an LED display and a built-in AM/FM radio. Its other features include 60dB S/N ratio, less than 0.3 percent THD and 20Hz to 20kHz frequency response range. A remote control is bundled.

The wireless trend, on the other hand, has yet to garner more interest among mainland China suppliers due to its limited market potential. But some makers have released their own versions for variation in their product selections. One such company is Shenzhen Smart Industrial Co. Ltd, which launched the W-5011, a wireless 5.1ch home theater system. Positioned as a midrange product, the W-5011 has a 2.4GHz wireless transmitter, and built-in Dolby Digital or AC-3, DTS and Dolby Pro Logic II decoders. It has aluminum speaker cabinets.

CAV Audio China Inc. plans to develop new models based on Bluetooth technology. "We have cooperated with a professional wireless solution provider to develop related products. There are mature wireless modules and solutions so we can lose no time in developing new wireless sets according to our clients' needs," said Jenny Zhong, export manager at CAV.

Running parallel to these developments is the release of more mini 5.1ch systems, in answer to the booming demand in the PC sector.

Beijing Edifier Technology Co. Ltd, a maker specializing in multimedia speakers, has the S5.1 Super Theater Desktop System. The model's speakers have MDF cabinets. Each has a magnetically shielded driver. The system consists of an 8in long-throw super woofer with a 90W amplifier, and five satellites each with a 4in midrange and a 3/4in cloth dome tweeter.

Guangzhou Nuodi Audio Tech Co. Ltd's entry-level mini 5.1ch system, the SP-550, has a 6.5in woofer with 50W power output, five 2.5in satellite speakers and 15W tweeters.

Across the product line on the mainland, the design trend in new releases still points to slim form factors and piano paint finish.

CAV's midrange home theater system, the TT6000, has a full steel shell that matches flat-panel TVs and DVDs. It consists of five speakers with 25mm tweeters, 3in mid-bass speakers and 3in woofers, and an active 8in subwoofer in an aluminum cabinet. The company's Fi-Ex system is representative of its models with piano paint finish. CAVcan release a new model within three months.

Diweiqi Acoustics Equipment Manufacturer Fty's DL-828 has a piano paint finish. The model has 2x120W front speakers with 10in woofers, 6in midranges and 1in tweeters. It has 4ohms impedance and 89dB±3dB S/N ratio. The maker, a specialist in 5.1ch home theater systems, is planning to launch higher power systems starting at 150W and featuring enhanced external designs.

	Hong Kong-based Bobolink offers the SS-3800F from its slim series. The model has 80cm- to 110cm-high tower speakers with about half the depth of regular systems.

Bobolink Industrial Ltd continues to strengthen its home theater system lineup while adopting the latest design trends and technologies. The company is one of the first suppliers of aluminum home theater speaker systems. Its catalog features models that are not only high-powered but also in elegant finish to cater to the high-end market.

Bobolink's top-of-the-line active 5.1ch home theater speaker systems feature piano paint finish and aluminum cabinets. Its models HW-420 and HW-437 boast 340W rms power. The tower speakers are 105.5cm high and have piano paint finish. Dolby Digital, AM/FM PLL tuner and wireless rear speakers are optional.

The company also offers wireless home theater systems with aluminum satellite speakers, such as the WiHA-811F and the WiHA-900F. Both models use non-directional, diffused infrared (IR) technology. The wireless rear speakers have built-in stereo amplifiers. Up to 150W rms total power is supported. "We can install the wireless modules in all our other models," said Jason Chee, managing director at Bobolink.

Designed for the latest flat-panel displays, Bobolink's SS-3000F, SS-680 and SS-3800F are part of its slim home theater speaker system series with 500W to 720W maximum power. The tower speakers have a height of 80cm to 110cm and about half the depth of regular systems. Each system comes in high-gloss or regular PVC finish.

The space-saving eHW-430, also from Bobolink, is a true 5.1ch home theater system in three speaker cabinets. It features 110cm-high tower speakers and is designed for easy installation. It supports 150W rms total power and utilizes Active Acoustic Reflection (AAR) technology.

For the hi-fi market, Bobolink offers its SS-201, SS-120 and SS-270 hi-fi home theater speaker systems. The SS-201 features 400W total maximum power and 91cm-high tower speakers. The SS-120 has 340W rms power rating and 79cm tower speakers. The SS-270 is a 460W rms system with 99cm tower speakers.

Bobolink has also developed a series of furniture speakers that double as TV stands. The MW-405 and the MW-410 are initially available as 3.1ch integrated speaker systems that can be customized to convert into 5.1ch systems. Each model has total power output of 135W rms. SRS 3D sound effect and an AM/FM PLL tuner are optional features. The furniture series has a high-gloss or regular PVC finish. The series models measure 110x45x60cm.

With its diverse offering of home theater systems, Bobolink is shifting product development to other audio products in 2008. To be launched are a hi-fi Internet radio with Wi-Fi wireless connection, high-power Bluetooth speakers, and HDD-based virtual jukebox mini and micro component systems with DAB or AM/FM PLL tuners.

AHK Industries Ltd's home theater systems are available with plastic, wooden, stainless steel and aluminum cabinets. Some models have large subwoofer cabinets and thin, tall tower speakers. Model P1000801 consists of 10W to 40W main speakers, 10W to 30W center and satellite speakers, and a 35W to 200W subwoofer. Each of the main speakers has four 2in drivers, while the center and surround speakers have three drivers each. The subwoofer has an 8in bass driver. The system is compatible with AC-3 and DTS.

AHK's P1000803 contrasts a cube-shaped 30W to 100W subwoofer with a 6.5in bass speaker, and tall, thin and rounded 10W to 30W satellite speakers. The main speakers have 10W to 40W power output, and the center speaker has 10W to 30W. Another model from AHK, the P1000896, features an iPod-inspired white finish. This 5ch speaker system consists of 10W to 40W main speakers, and 10W to 30W center and surround speakers. Each speaker has a sensitivity rating of 86dB±3dB.

AHK's 100-member R&D team is developing new high-end models, including some wireless versions, said marketing executive Yun Cheng. The company also intends to increase the promotion of wooden models and simplified, three- or four-unit home theater systems. It projects five to 10 new models will be released during 2008.

	The G51 from Taiwan's Logitech is a 5.1ch surround sound system consisting of a 19W center speaker, 4x20W satellite speakers and a 55W subwoofer. Its frequency response is 36Hz to 20KHz.

The mainstream features of the island's 5.1ch systems are power output ratings ranging from 80W to 160W with subwoofers supporting up to 60W. Commonly highlighted codecs are Dolby Digital and DTS with 3D surround effect and stereo sound. Other mainstream features are 20Hz to 20kHz frequency response and more than 50dB S/N ratio. Amplifiers are either built-in or supplied separately. Most Taiwan manufacturers' products bear CE, FCC and UL marks.

Due to the line's mature technology, interviewed makers' product development focus this year will mainly be on cosmetic design and new applications. Compact and streamlined configurations remain the top design agenda as these blend well with home interiors. Speaker cabinets are available in wood or plastic with metal or piano paint finish. Wooden cabinets continue to be popular for their classic and audio-enhancing qualities, while plastic cabinets have caught up in popularity in recent years.

In terms of applications, makers are redefining 2ch and 2.1ch multimedia speaker systems, expanding use to home entertainment and gaming. Some makers have introduced such systems in 2ch to 5.1ch that are compatible not only with PCs and portable devices but also with TVs, game consoles and karaoke systems.

An example is Logitech Far East Ltd's recently released 5.1ch home theater system, being promoted for its gaming application. The G51 is a surround speaker system that features Frequency Directed Dual Driver sound technology, which creates a uniform sound field anywhere in the room, and eliminates the hot spots and uneven response of conventional dual-driver designs. The model has total power output of 155W rms from a 19W center speaker, 4x20W satellite speakers and a 55W subwoofer. Its frequency response is 36Hz to 20kHz; the subwoofer crossover frequency is 150Hz.

Wireless technology has been developed for some years but wireless products are still a minor line due to higher costs, lower product reliability and limited bandwidth. At present, wireless models based on Bluetooth technology are more common in portable speakers.

For home theater supplier Forgings Industrial Co. Ltd, wireless models account for less than 10 percent of its total output.

For MultiStar Industrial Co. Ltd, wireless models represent only 10 percent of its 5.1ch system production. One model is a 2.4 GHz wireless 5.1ch home theater system with an operating range of 8m to 12m. It has an IR remote control and touch-pad control. The company is also developing a home theater system that can be connected to multiple devices via Ethernet. Called the AV Box, the model comes with a universal remote control that can be used with the speakers and the A/V devices.Also on MultiStar's drawing board are 2.1ch systems with simulated 5.1ch output, which the company targets for price-sensitive markets.

MioStar Corp. is also working on wireless models to be launched this year. Other than this, the company's development focus is on new ID and compact designs. The company believes that due to the 5.1ch line's mature status, the differentiating factor is in distinct external designs.

Most interviewed mainland China suppliers already foresee a 5 to 10 percent increase in export quotes due to the continued appreciation of the yuan, and rising material and labor costs. The implementation of the new law on employment contracts in January this year impacts many small operations, especially in the Pearl River Delta and Yangtze River Delta regions. The estimated labor cost increase is 5 to 10 percent in these areas, which is compounded by a power shortage problem. Toward the end of 2007, small- and medium-scale companies already increased their quotes by 3 to 5 percent. For some large-scale suppliers, steady prices are expected for high-end products in H1 2008.

Mainland China prices depend mainly on the cabinet material and raw speaker quality. Plastic cabinets are widely used in entry-level and some midrange models. There are also wooden cabinets in these segments but are usually made of MDF, while high-end systems use solid wood. Other price factors are control units and displays such as VFDs and LEDs. In entry-level models, the control unit is on the panel of the main speaker. It may be lower priced but it affects the hermetic property of the cabinet. For this reason, most midrange and high-end models use wired or wireless remote controls.

Prices of entry-level 5.1ch sets range from $30 to $100, midrange versions from $100 to $800 and high-end models are more than $800. Entry-level products include home theater systems with 3in to 5in woofers. Prices at G-Chantz, Diweiqi and Guangzhou Nuodi range from $30 to $300, mainly for OEM products. Guangzhou Nuodi's high-end systems are priced from $700 to $800. Big companies quote from $1,000 to $2,000 for their midrange products. Guangzhou HiVi's high-end X3HT is priced at more than $3,000 FOB. CAV's prices range from $80 to $1,000.

Interviewed Hong Kong suppliers project raw material and overall production costs to continue to increase in the coming months, but these will not be passed on immediately to buyers. Due to the intense competition in the line, entry-level and midrange models may retain their current quotes. High-end systems, however, have more room for adjustment, as price is a secondary consideration to performance in this bracket.

Size, amplifier power, housing material and surface finish are the key price determinants for the home theater systems. Entry-level systems are mostly made of plastic, while midrange models have wooden, plastic or stainless steel medium-sized cabinets with plastic veneer or glossy finish. Piano finish and aluminum cabinets characterize the high-end segment, where tower satellite speakers, big subwoofers and high power output are the norm.

Hong Kong's entry-level mini home theater systems in plastic cabinets are priced lower than $50. Midsized wooden, stainless steel and aluminum systems are from $70 to $100. High-end aluminum or piano-finished systems with tower speakers are quoted at $150 to more than $200.

In Taiwan, most contacted companies are considering a price increase this year with the 10 percent increase in raw material cost. Prices range from $25 to $200, depending on the specifications. RoHS compliance and other product certifications also add to the price. Most Taiwan manufacturers are not willing to disclose their prices due to their ODM contracts, but premium models that feature wireless technology, built-in decoders and above 5.1ch output may fetch more than $500.