Makers emphasize midsize-panel flash MP3 player models

	The BM188 model from Shenzhen Bmorn has a 1.1in 2-color OLED display, MP3, WMA, APE and FLAC playback, and a Li-polymer battery.

MP3 players with larger screens will support e-book reading, gaming and video playback to boost adoption.

China suppliers of flash MP3 players with OLED displays are setting their sights on midsize-panel units in a bid to prop up sales and close the gap with LCD rivals. Most releases now pack 1.5 to 2.8in screens that can support popular add-on functions such as e-book reading, gaming and video playback. Output of this type is forecast to rise significantly in the next 12 months as more companies join the bandwagon.

Further declines in fraction defectives and the cost of medium-sized panels are providing additional impetus to manufacturers. OLED panels nevertheless remain 15 to 20 percent more expensive than LCDs, which continues to be a major concern for makers.

High input spending is in fact one of the main reasons why OLED types account for only 10 to 15 percent of China’s overall output of flash MP3 players. Another factor is the size of the panel available for adoption, which has been limited to 1 to 1.3in and smaller than LCD variants.

But while companies admit that the sector will continue to trail LCD rivals, they emphasize the core advantages of OLED-enabled units to sustain growth. Makers said the latter delivers better display effects, faster response time, lower power consumption and thinner external designs. Rapid technological advancements are expected to put the product on a par with LCD counterparts in the near future.

Increasing demand is encouraging suppliers to stay in the line. Most enterprises’ output and exports have been relatively stable or seen a slight increase. In the next six months, shipments are expected to grow by about 5 percent based on several factors.

Firstly, orders from the US and the EU are recovering in the midrange and high-end segments. The two regions already make up 70 to 80 percent of deliveries, a proportion that is expected to increase further by about 10 to 20 percent YoY. T-Link Industrial Development Co. Ltd continues to rely on the US as a main export destination. The company sends 95 percent of its OLED players to the country and the EU.

Moreover, emerging markets in Southeast Asia, Eastern Europe, the Middle East, South America and Africa will boost demand. To grab a foothold in these areas, makers are introducing entry-level products there. Such units feature small panels and integrate basic functions at a low price.

Shipments to new markets are forecast to increase by at least 5 percent even as manufacturers emphasize the EU and the US. Complementing the boost in export volume is the drop in prices. The reduction will be a result of climbing productivity among OLED panel providers.

	More Star’s MP2008O model has FM radio, voice recorder and ID3 functions with support for microSD memory cards.

Half of all OLED-based players are entry-level, with midrange releases coming in second to take a 40 percent share. The latter is expected to eat into the space of the first as makers increase output of high-value types.

Low-end players usually have a 1 to 1.1in screen with 96x64, 96x96 or 128x64 pixels. These integrate a USB port and a built-in earphone jack. Models read WAV, WMA and MP3 audio formats, with lyrics synchronization. The maximum internal NAND flash memory is 2GB.

Midlevel devices boast 1.1 to 1.3in displays supporting 128x64 or 128x128 pixels. Most units combine an SD/MMC slot and a rechargeable lithium battery. They are compatible with WAV, WMA, MP3, APE, FLAC, JPEG and AMV formats, and allow microphone input, ID3 and lyrics synchronization.

Products in this category pack multilanguage displays, 3D surround audio, e-book readers, FM radios and transmitters, and line-in and voice recording. The built-in memory can reach 4GB.

Shenzhen Bmorn’s BM188 model features a 1.1in, 128x64 dot-matrix, 2-color OLED display. It has a USB 2.0 port, 1 to 4GB internal memory and a Li-polymer battery. The player reads MP3, WMA, APE and FLAC audio formats, and enables firmware upgrades.

Products in the high end boast larger screens and a more comprehensive format support. A typical unit has a 1.5 to 2.8in panel capable of 128x128, 160x128 or 320x240-pixel resolution. It has a game function and can render BMP, GIF, FLV, AVI, MPEG-4 and RM/RMVB. The built-in flash memory can reach 8GB.

Beyond function, makers have begun enhancing external designs as well. The trend is going toward slim, novelty and water-resistant versions.

More Star Industrial Group Ltd is looking to improve exteriors in the 1 and 1.1in category. It has released a sports keyring casing in a variety of colors.

The MP318O model, which can be hooked onto clothes or accessories, has a 1.1in, 128x64, 2-color screen and supports MP3, WMA, WAV playback. It has a voice recorder, an FM radio, ID3 and lyrics display, a Li-polymer battery, and 1 to 8GB internal memory.

The display panel, IC and NAND flash memory used affect product quality and influence pricing. The screen alone makes up 60 to 70 percent of costs.

PMOLED panels are usually limited to small electronics such as MP3 and portable media players, and mobile phones. AMOLED technology, meanwhile, is used for medium and larger devices, including GPS, digital photo frames, PC monitors and portable TVs. The panels are sourced from mainland China and Taiwan. A growing number of makers, however, are considering shifting to domestic suppliers as the mainland’s OLED industry takes off.

Decoder chips are another key component for OLED flash MP3 players. Suppliers source these from IC makers in the mainland, Taiwan, South Korea and the US. Actions, Rockchip, Sunplus, Zoran, Ali and Telechips provide solutions for most entry-level and midrange products. SigmaTel and TI inputs are preferred for high-end models.

NAND flash memory is available in 1, 2, 4 and 8GB capacity, with 2 and 4GB as popular storage sizes.

OLED is a promising technology as the panels function without a backlight, are lightweight and thin, and boast a wide viewing angle, fast response time and high contrast ratio. They are also simple to manufacture.

The technology, however, is still a relatively expensive display option, the main reason for its low penetration rate, especially in the MP3 player line.

Taiwan makers emphasize AMOLED displays. Shipment value amounted to $537 million in 2009, surpassing PMOLEDs at $291 million, according to DisplaySearch. The latter features a simpler manufacturing process and lower costs, but the first boasts a better display resolution.

Among the local suppliers are RiTdisplay, Univision, Chimei-Innolux and AU Optronics Corp. The first two offer both PMOLED and AMOLED panels with monochrome and multicolor solutions.

A wide selection of products ranging from personal navigation devices, car multimedia players, high-end smartphones to MP3 players often employ OLED technology. The available screen sizes are from 2.6 to 3.5in.

High-end MP3 players were considered a major application for OLED displays in the recent past. Today, these portable audio devices have been replaced by the smartphone’s subdisplay as the top driver of the line. Already, AMOLED screens have become mainstream due to increasing demand from handset manufacturers.

The latest in R&D is to upgrade the design of small displays. For example, AUO has released a 2.4in AMOLED in-cell panel with special features such as transparency and projective capacitive multitouch. The downsized panel’s contrast ratio can exceed 20,000:1 and response time is rated at less than 0.01ms. The resolution is 240xRGBx320.

AUO also offers OLED screens in 3.2 and 3.5in versions.