Makers explore new designs to boost line

	Hussar’s V3000 model is a 2-channel floor-standing hi-fi system with a 5.5in pure wool cone nonmagnetic bass and 1in natural silk dome nonmagnetic tweeter.

Suppliers of home theater systems in China are exploring new configurations to grab more orders and boost profits dented by rising manufacturing costs. Multimedia setups, which are targeted at the entry level, are increasingly adopted as a desktop solution with DVD playback capability or a laptop peripheral for the study or bedroom.

Besides being in alignment with the portability trend, this development is spurred by the growing popularity of all-in-one PCs and ultraportable notebook computers. Meanwhile, traditional varieties with a large power output are limited to audiophiles or the sitting room.

Hi-fi types continue to dominate the upscale sector even as makers in China provide units for the entire spectrum. Hussar Technology Co. Ltd has released several such systems, including the V3000 model, a 2-channel multimedia version with a stand-alone amplifier. It uses a 5.5in pure wool cone nonmagnetic speaker, a 1in imported natural silk dome nonmagnetic tweeter and an 18mm MDF cabinet with a piano paint finish or wood veneer.

But even as companies continue to offer hi-fi setups, many enterprises are exploring other varieties to penetrate more markets.

Star Audio Co. Ltd, which produces mostly hi-fi home theater solutions for Europe, has recently introduced several small units for the low-end category. Its model HT-13-B 2-channel bookshelf setup with a phase-reversal cabinet has a 2x40W handling power.

Energy-saving releases are expected to become a strong trend as well. Shenzhen Lantian Electronics Co. Ltd and Zhongshan Xiaolan Chuanda Electron Fty have developed variants with 1W standby power consumption per Europe’s EuP Directive. The former will launch systems that consume 0.5W on standby mode in anticipation of requests for such products beginning 2012.

In terms of design, a rising number of companies are releasing units to match the latest TV sets and complement home interiors.

Zhongshan Xiaolan Chuanda’s soundbar, the CY-905 model, has a slim body suitable for tabletop use or mounting on the wall. The easy-to-install type does not require cables as it depends on 2.4GHz technology to connect to an active subwoofer to form a 2.1-channel setup.

The integrated home theater system has a built-in HDMI port.

Amid an active R&D environment, makers are faced with thinning margins due mainly to rising costs, particularly of amplifier ICs, wood boards and plastic. Several have increased prices as a result.

For some speaker models at Hussar, quotes that have gone unchanged for over ayear have increased by up to 15 percent since May.

Many, however, are keen to stabilize rates to buoy up sales. Shenzhen Lantian has announced markups of no more than 5 percent. At Nansin (HK) Ltd, several varieties have had adjustments of $0.30 to $0.50 but most are steady.

Makers that service price-sensitive regions such as Africa, the Middle East and Southeast Asia have kept quotes at similar levels.

To sustain the rebounding overseas business, which started turning around in 1Q10, many suppliers are pursuing emerging markets. They are eyeing several countries in South and Southeast Asia, led by India, Indonesia and Malaysia, where demand is climbing because of the ASEAN Free Trade Area agreement.

Shipments of speaker systems, including single- and multidriver models, saw improvements in volume and value by 44 and 50 percent in 1Q10, respectively, according to customs data. Most units were sent to Central Asia, South America and Europe.

Product range

	This 2.1-channel multimedia speaker system from Nansin includes a 4in subwoofer and two 2.5in satellite speakers.

Models providing 2 and 2.1-channel output dominate the supply of home theater systems below 5.1 channels. These include bookshelf types that require an additional amplifier and floor-standing form factors, both of which are passive configurations. There are also multimedia releases, usually active with built-in amplifiers.

Bookshelf units are mostly produced for music playback, with a power output of 40 to 100W. Floor-standing setups can be used for audio and video at 50 to 200W.

Multimedia systems are typically entry-level varieties adopted for desktop PCs or DVD playback at 20 to 50W. The main speaker has a two-way structure with 1in tweeters and 4 to 6.5in midrange drivers, or a three-way configuration that also includes 8 to 10in woofers. An additional active subwoofer entails a separate 6 to 15in unit with a power output ranging from 10 to 100W rms.

Many manufacturers can design an amplifier to match their speakers. A/V cables, remote controllers and other components are also available.

As a mature product line, R&D is largely focused on appearance or cabinet design. From PVC veneer and clear lacquer, metallic and highlight paint are becoming the popular finishes. For the front panel, acrylic and brushed- or mirror-finished metal panels are the latest trends.

Units with wood veneer and piano paint finish, however, are still regarded as classic.

Raw speakers, which influence the sound quality of a home theater system, make up about 20 percent of the product’s total costs. Aluminum, titanium and beryllium are the typical material choices for the dome tweeters.

The cone for driver units and woofers are usually made of PP for entry-level or midrange releases, and wool or fiberglass for upscale models.

The cabinet contributes 20 percent to the overall manufacturing outlay. Low-end units use plastic such as ABS, while MDF is common among midlevel releases. PVC or wood veneer, or a different lacquer is employed for the surface finish of the box.

HDF or real wood is preferred for high-end cabinets, with a piano paint finish or real wood veneer for the exterior. Sealed and reverse-phase enclosures are typical.

For passive systems, the crossover circuit is essential to filter the sound signal into the tweeter, midrange and woofer. Amplifier ICs employed in active variants are mostly imported from Taiwan or other overseas suppliers.

The cost of metal, wood and plastic rose in the past 12 months. ABS saw a 20 to 30 percent increase, while copper, steel and aluminum experienced a 5 to 30 percent YoY climb.

Despite this, many companies are not planning on adjusting quotes to boost sales. They are hoping the decline in outlay for some inputs will ease the pressure on prices.