HDMI DVD players

	DolsonMuse offers the DS-AX3+DS-DX3 featuring an iPod docking station.

Makers are dropping quotes, diversifying markets and adjusting MOQs in a move to reverse a downtrend.

China suppliers of HDMI DVD players, banking on competitive pricing to reinvigorate exports, have dropped prices by as much as 30 percent in recent months.

Moreover, companies plan to keep quotes stable despite thinning margins. HDMI types are currently about $100 less expensive that Blu-ray players, although the latter’s increasing popularity and maturing technology are starting to narrow the gap. For some makers of HDMI DVD players, profits have dropped to $1 per model.

Suppliers are also diversifying from the main markets of North America and the EU into South America and Russia. The shift comes after aggregate DVD player shipments in 1Q09, totaling nearly 18 million units, plunged 34 percent YoY, according to customs statistics. At $830 million, revenue fell 33 percent.

Despite aggressive measures, forecasts continue to be bleak due to the economic downturn. From at least 500 in 2004, the number of China suppliers engaged in the line is now down to about 200. Many have shifted to more-lucrative businesses, including netbooks, desktop PCs and home theater systems. Those that remain are located in Fujian, Zhejiang and Guangdong provinces, with the last accounting for 80 percent of total export value.

The issue is compounded by high IPR fees, which add as much as $25 to each device. This excludes the $10,000 annual membership charge for HDMI adopters. As such, most companies focus on OEM business to avoid shouldering licensing costs. Many take in small orders, revising the 5,000-unit MOQ in previous years.

	Model IX826 from Beijing Intellix has a 1920x1080-pixel resolution.

HDMI DVD players are regarded as a transitional product for consumers waiting for the Blu-ray disc to supplant the DVD. They deinterlace the incoming video source and upconvert standard definition to a higher resolution, although the image is not true HD.

Basic and enhanced types are available in China, both of which are priced 30 to 50 percent less than Blu-ray players.

Featuring up to 1080p resolution, mainstream upconverting units are equipped with AC-3, DivX and MPEG-4 decoders. They support CVD, DVCD, DVD+/-R, DVD+/-RW, HDCD, SACD, SVCD and WMA.

Models also have S-Video, component video, optical fiber, coaxial and 5.1-channel audio output, while USB ports and memory card readers are staple. Error correction and firmware updating functions are common but built-in video games are optional. Few models run DTS since its integration requires a license.

Aside from the basic functions, enhanced versions have network media download capability and RJ-45 interconnection. They are compatible with AAC, AVIH.264, MOV, MKV, MPEG, MP4, Ogg, VC-1, VOB, WAV, WMA, WMV 9 and Xvid. An external HDD may be added and an 806.11 interface is optional.

DolsonMuse Electronic Co. Ltd’s DX-AX3 model has integrated A/V receivers. It is also fitted with an FM/AM PLL tuner, double iPod docking and DVB-T receiver. Its vacuum-tube amplifier provides hi-fi sound quality.

	Dahua’s SD-852 has a USB port and a memory card reader.

The key R&D trend in the line is universal functionality, with many suppliers working toward HDMI DVD players that can support all A/V formats. Some are developing units that employ digital enhancement based on Faroudja’s Directional Correlation Deinterlacing. These, however, are currently available only in the upscale domestic market.

Research on proprietary upscaling technology is on most companies’ drawing board. Others, including Dahua Electronic (Shenzhen) Co. Ltd, offer products with standard RealVideo Variable Bit Rate support. The maker’s SD-852 model is exported to the Middle East and Southeast Asia.

Manufacturers adopt a range of components for various price points. About 80 percent of China-made HDMI DVD players, including those from Suntop Technology (Shenzhen) Co. Ltd and Dahua, typically have Sunplus or MTK ICs. The former, although $0.50 to $1 costlier, supports more features. Both IC types afford up to 1080p output, DivX and HD JPEG decoding and 7.1-channel audio output. They allow a USB 2.0 port and memory card reader to be incorporated into the DVD players.

Suntop uses either chipsets depending on the model. Its selection includes a series with a radio tuner, channel amplifier, video game function and built-in speakers priced at $25 each.

Loaders from Sanyo are mainstream as they are the most inexpensive, although those from Samsung, Sony and Panasonic are also utilized. Tak Champ International Ltd opts for Mitsumi, specifically for Europe- and North America-bound designs. Its ICs are from Zoran.

Enhanced housing durability is also emphasized. Due to cost issues, plastic is favored over metal or aluminum alloy, which are primarily for the midrange and high-end segments. Most makers use public molds as DVD players usually have the same constructions. Some, however, provide mold-design services. Others subcontract this process.