HDD DVD recorders

	Shenzhen Dayou from mainland China has developed the DRW-2086, which features dual SCART and USB connectors interfaces.

Mainland makers see aspect design as the main attraction for buyers.
Hong Kong expands HDD selection to 400GB.

The HDD DVD recorder industry in mainland China forges ahead, with makers focusing R&D efforts on both aspect design and function. Despite increasing their output of models supporting multiple formats, makers are paying more attention to their models’ aesthetic aspects to attract more buyers.

According to some manufacturers, aspect design closely follows trends in flat-panel TVs, such as color design, with black and silver being the mainstream colors. Makers are also introducing compact and ultra-thin models, as well as units with special structural designs.

The industry in Hong Kong, on the other hand, is weakening, but makers are on the same track as their mainland counterparts, continuing to introduce models that support different discs and media formats. They are also expanding their selection of HDD sizes to include 400GB capacity and enabling the interfacing of portable storage devices such as USB flash drives, SD cards and MMCs. Mainstream models feature dual-format DVD+/-R/RW drives that are capable of reading any content and recording on widely used optical media. Up to six recording modes are available for flexible memory management.

Mainland China makers are also coming out with models that are integrated with IEEE 1394 connector and HDMI, dual SCART connection, USB connector, card reader, and DVB-T or ATSC and analog dual tuner functions. These models are expected to increase in number in the first half of 2008.

Other features include built-in multidigital audio decoders such as Dolby, HDCD and MPEG-4. New models will be introduced as standard, higher-version playback formats are released.

In mainland China, there are more than 50 small-, medium- and large-scale manufacturers that are active in the line. Among its major HDD suppliers are Hitachi, Western Digital and Seagate. More new players are expected to enter this line in the next two years. More than 80 percent of HDD DVD recorder makers have factories in Guangdong province.

In Hong Kong, the number of makers continues to dwindle. Less than 10 companies remain and less than five are actively promoting their models. Those interviewed noted the decline in demand in 2007 despite shrinking prices and the expanding list of value-added features. This list will continue to lengthen in 2008 if only to allow suppliers to maintain their price range.

	The AN-DVR238 from Addnew of Hong Kong supports simultaneous video recording and playback, programmed recording, scheduled recording, high-speed dubbing and time-shifting.

One model with special structural design has been developed by Shenzhen Unihero Technology Co. Ltd of mainland China. The DVR9959 has an HDD that can easily be installed and disassembled by users. It is compatible with discs such as DVD, SVCD, VCD, CD, Kodak Picture and picture CD, and with systems such as PAL and NTSC TV. It also supports formats such as DivX 3.11, 4.02, 5.02, 5.03, 5.05 and later versions, DivX Pro, XviD, MPEG-4 and MP3. Other functions include fast- and slow-motion and program play modes, remote control, progressive scan video output, timer record/time shift, title and chapter editing, program protect/unprotect and one-touch recording (OTR). It can record external signals on a 250GB HDD or USB device. The model also has SCART I/O, 5.1ch surround output, IEEE 1394 socket and USB port.

Another model is the DHR-5006T from mainland China’s Shenzhen Newland Electronic Industry Co. Ltd. This recorder has a 3.5in HDD and is compatible with most playback discs, including DVD+/-R/RW, DVD-Video, CD, VCD, SVCD, HDCD and CD-R/RW, as well as MP3, JPEG and Kodak Picture formats. It also supports recording modes such as high quality (HQ), standard play (SP), extended play (EP) and super long play (SLP). Its HDD storage capacity comes in 80GB, 160GB, 250GB or 400GB. It also has USB, card reader, IEEE 1394 and HDMI ports, as well as a built-in DVB-T or ATSC and analog dual tuner. Other functions include NICAM compression with dual languages, automatic TV channel scanning, memory, live and timed recording, auto search for free recording space, automatic index creation for recorded files and easy editing for video content.

According to Shenzhen Newland, its R&D is currently focused on models with DVB-T or ATSC functions and high-definition connectors. The company will have released more new models by the end of 2007.

Mainland China maker Shenzhen Dayou Electronic Co. Ltd has developed its DRW series with HDMI. This model has a 5.1ch DVD recorder with DivX playback and features dual SCART and USB connectors. The company also offers DRW-2086 DVD recorders.

Shenzhen GIEC Electronics Co. Ltd from mainland China has also developed the GK-9500, which supports multidisc formats such as DVD, DVD+/-R/RW, SVCD, VCD, CD, CD-R/RW and picture CD. The model has built-in multidigital audio decoders such as Dolby, HDCD and MPEG-4. It can record content from HDD to DVD+R/RW or DVD-R/RW discs at a speed of 60s without affecting picture quality. This kind of content normally takes 1hr to record. The unit also has six recording modes that include a 6hr, high-quality 4.7GB DVD+/-R/RW recording disc. It can also record up to 102hrs with its HDD recording modes, since it adopts the MTK chipset and FUSS loader and has its own recorder driver. The model also features 2ch and 5.1ch analog audio output, a time switch that allows users to control playback of TV programs, a disc-lock function and timer recording. It also allows modification of TV-channel information, including frequency, audio and NICAM modes.

The company plans to focus its R&D on HDD DVD recorders that are DVD+/-R/RW-compatible in the near future.

Hong Kong maker Samwin Hong Kong Ltd’s top-of-the-line model is the SW-8411A HDD DVD+/-R/RW recorder with a built-in DVB-T tuner, USB and IEEE 1394 ports, 720p/1080i upscaler and HDMI output. It supports time-shifting, OTR, auto/manual chapter marker insertion and index picture screen. Its DVB-T receiver supports EPG, program memory and program editing. This model is available in silver and black, and can be shipped along with an A/V cable, IR remote control and antenna.

The company’s other model, the SW-8410 HDD DVD+/-R/RW recorder, features time-shifting, OTR, auto/manual chapter marker insertion, index picture screen and append/divide/erase functions. It comes with USB and IEEE 1394 connectors, component and composite output, analog and digital audio output, optical digital output, coaxial digital output, S-Video, SCART I/O, Dolby Digital (AC-3) decoder and progressive scan. As with the other model, units come in silver and black and can be bundled with an A/V cable, IR remote control and antenna.

The company plans to release an HD DVD recorder and a Blu-ray player before the end of Q1.

Addnew Technologies Ltd offers eight models of HDD DVD recorders that are compatible with discs such as DVD+/-R/RW, DVD, VCD, CD, CD-R, CD-RW and Kodak picture CD as well as MP3, JPEG, WMA, MPEG-4 and DivX media formats. The internal or external hard disks range in storage size from 80GB to 400GB. Six recording modes—HQ, SP, SP+, long play, EP and SLP—are available.

The company’s AN-DVR238 supports simultaneous video recording and playback, programmed recording, scheduled recording, high-speed dubbing and time-shifting. It also features composite, S-Video, IEEE 1394, TV, USB, analog audio and optional SCART input, as well as YUV/PSCAN video, coaxial audio, optical and 5.1ch output. Users can also perform simple video editing with this model.

Meanwhile, the AN-DVR900 includes a USB port, composite, S-Video, TV, IEEE 1394, analog audio and optional SCART input. It allows videos to be recorded live, programmed and played at the same time, as well as enables scheduled recording. It comes with high-speed dubbing and simple video editing commands. Time-shifting, hard-disk editing and DVD-to-HDD/HDD-to-DVD transfers are allowed. YUV/PSCAN, optical audio, coaxial audio and 5.1ch audio output areincluded.

Addnew’s PVR-100 personal video recorder supports MPEG-2 MP & ML compression and is embedded with a DVB-T tuner and an 80GB, 160GB, 250GB or 400GB HDD. It features scheduled recording, multilanguage OSD, dual SCART connection, teletext, favorite-program setting, 600-program memory and firmware update via RS-232.

Addnew will release two new models per quarter of 2008. Buyers can request for other housing designs for their recorders. SD/MMC slots are also optional.

Mainland China’s makers have their R&Ds working on one new model in one month, with new aesthetic design. It usually takes between one and two months to develop a new model with a new mold. The minimum order quantity ranges from 1,000 to 2,000 units. Delivery time is between 30 and 40 days from date of order.

	Hong Kong maker Samwin's SW-8410 features time-shifting, OTR, auto/manual chapter maker insertion, index picture screen and append/divide/erase functions.

The prices of HDD DVD recorders largely depend on the functions and features added. However, some makers in mainland China point out that they are facing a continuous increase in raw material costs, such as of metal and plastic. This has also affected prices, although not as much as add-ons and features.

Other makers identify RoHS compliance as a factor. Normally, RoHS-compliant models are higher by about five percent compared with ordinary models.

Samwin’s 80GB version is priced at $140. Upgrading the hard disk to 160GB increases the price by $10. HDMI support adds $15 to the unit price, while a DTV tuner costs another $20.

The brand of HDD may also affect prices. Samwin prefers to use the Samsung or Western Digital brands, although buyers have the option to choose their preferred brands. The company plans to maintain its prices in 2008, but said it will add a new feature once every few months to increase the value of its HDD DVD recorders.

Addnew’s models are priced at $96, excluding the HDD. The company projects a 5 to 10 percent price reduction in 2008 due to the decrease in cost of key components.

In mainland China, HDD prices are generally fluctuating. This has pushed makers to quote FOB prices for models without HDDs. The final HDD price is then added to the final FOB price.

The FOB prices for HDD DVD recorders usually differ with aspect design, chip solution, function, HDD or I/O sockets. A basic entry-level model without a high-definition connector is priced between $60 and $70. An HDD DVD recorder with 80GB capacity is priced from $120 to $130. This kind of model supports most discs and media formats, as well as PAL and NTSC TV systems. It has SCART I/O, 5.1ch surround-sound output, IEEE 1394 port and HDMI, USB input and a card reader. A high-end model with a DVB-T or ATSC and analog dual tuner, 80GB HDD and support for HQ, SP, EP and SLP recording modes is quoted at $160, which covers RoHS compliance. HDD storage capacity of 160GB, 250GB or 400GB is optional.

Makers forecast that prices for midrange and high-end models will experience a 5 to 10 percent decrease in Q1. As for entry-level models, prices have drastically gone down as a result of stiff price competition. The prices of HDDs and recorder chipsets and loaders will also go down by 5 to 15 percent. The decrease in the cost of HDDs, chipsets and loaders will, in turn, bring down the prices of HDD DVD recorders. Most makers now adopt chipsets and loaders from major components suppliers such as FUSS, LSI, MTK, Panasonic, Sanyo and Sunplus.

	The GK-9500 from mainland China maker Shenzhen GIEC supports multidisc formats such as DVD, DVD+/-R/RW, SVCD, VCD, CD, CD-R/RW and picture CD.

Mainland China manufacturers are currently producing an average of 10,000 to 15,000 units of HDD DVD recorders every month. Because of steady demand, especially for new models with integrated features and functions, they are already looking at increasing production. This will consequentially influence a rise in sales in 2008.

Shenzhen GIEC has a monthly production capacity of 150,000 units per month. Its current average monthly output is 15,000 units. In 2008, the company will strengthen its HDD DVD recorder business and increase the total sales by 20 percent.

Shenzhen Dayou’s monthly capacity can reach 100,000 units. With its two production lines and more than 2,000 employees, the maker turns out an average monthly output of 80,000 units. Its ISO 9001:2000-certified factory has SMT machines from Siemens and Panasonic.

Shenzhen Newland can produce 50,000 HDD DVD recorder units every month. Its current average monthly output is 15,000 units. Its factory is equipped with six assembly lines and two SMT machines. As with Shenzhen GIEC, it plans to increase its sales of HDD DVD recorders by 20 percent in 2008.

Shenzhen Unihero has a monthly capacity of 15,000 HDD DVD recorders per month. Its current average monthly output is 10,000 units. The maker’s 8,000sqm factory in Huizhou, Guangdong province, is equipped with six assembly lines and manned by 500 employees. Shenzhen Unihero expects its product sales to post a 50 percent growth in 2008.

Addnew sources its HDDs from Samsung, Hitachi and Western Digital. Its loading mechanisms are purchased from Mitsumi and Sanyo, while its multimedia ICs are from Sunplus. The company also manufactures DVD players, DVD recorders and DVB-T receivers with HDDs.

Samwin recommends Western Digital HDDs but also uses Samsung’s. For HDD DVD recorders with HDMI, Samwin uses Sunplus ICs while LSI chips are used for models without HDMI.

Most makers in mainland China are capable of general assembly, testing, aging, repairing, quality control inspection and in-house packaging. They usually subcontract other production procedures such as mold making, SMT and plastic injection processes to electronics factories. They operate under OEM, ODM and own-brand businesses.

Most export-oriented suppliers in mainland China ship between 80 and 100 percent of their products to overseas markets, mostly to Australia, North and South America, Southeast Asia and Europe.

Shenzhen Newland exports all of its units mainly to Western Europe and Asia, while Shenzhen Dayou exports solely to the former. The next step for Shenzhen Newland is to increase export sales in North America. For Shenzhen Dayou, expansion to South America and Russia markets is planned in 2008.

Shenzhen Unihero also ships all of its HDD DVD recorders overseas, especially to Asia, Europe and South America. In the first half of 2008, the company will extend its export business to America and Australia.

Shenzhen GIEC ships more than 80 percent of its HDD DVD recorders to Western Europe, Australia and Southeast Asia. In 2008, it will explore the market in South America.

Addnew exports 15,000 to 20,000 recorders per month.

While the export business in mainland China is growing, exports of HDD DVD recorders from Hong Kong are estimated to plunge from 34.6 million units in 2006 to 24.6 million units in 2007, based on customs figures.

Samwin ships about 20,000 HDD DVD recorders monthly, a figure slightly lower than that in 2006. This crash, according to makers, is due to the fact that these products are no longer a novelty. “Many homes in Europe and the United States are already equipped with HDD DVD recorders, so demand is not as high as before. On the other hand, sales in emerging markets have not stepped up,” said Sandra Poon, marketing manager at Samwin.

Mainland China makers say their success in the export business can be attributed to their active participation in international electronics trade shows such as the China Sourcing Fair, CES, Hong Kong Electronics Fair and CeBIT. Some of them successfully offer their products to well-known customers such as Best Buy and Wal-Mart.

Although the requirement for environment-friendly materials and the increasing yuan-dollar exchange rate are major challenges that most export-oriented makers have to face, they have made such moves as upgrading production lines, training employees, purchasing RoHS-compliant test machines and adjusting their component supplier list to boost their operations.
Some makers in mainland China say that 100 percent of their HDD DVD recorders have already complied with the RoHS directive. They have also had their export models recognized by various international certification boards such as CE, FCC, UL and the China Quality Certification Center.