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The switch to digital TV emboldens suppliers' soaring projections. Value-added units rebuff threat from the competition.
China suppliers of portable DVB-T TVs are optimistic that exports will remain solidly on a growth track despite economic challenges and emerging competition from mobile TV service providers. The major reasons for this positive outlook are Europe’s digital broadcasting mandate and the advantages that stand-alone TVs have over other mobile TV devices.
The EU requires analog TV users to switch to digital systems, creating a wider and more-stable market for digital products such as portable DVB-T TVs. Since China companies ship more than 90 percent of output to Europe, the policy should help improve their sales. In particular, the DVB-T standard is making headway against DVB-H and DMB handsets in the region.
Anticipating higher demand, portable TV makers are developing more multifunction models and limiting production of basic units that provide only DVB-T. Recent releases have larger screens than mobile TV phones and are more compact. Versions that support MP3, MPEG-2/4 and JPEG formats are the mainstream supply.
In comparison with mobile handsets and other devices with a DVB-T tuner, portable TVs operate at almost no cost to the user. Common video and DVB-T functions found in portable media players or PMPs, for example, are combined into a single solution for portable TV use. The wireless broadcast signal reception is also more stable.
Even though prices are already comparatively low, makers said quotes might fall by an additional 5 to 10 percent in the next 12 months.
The performance of a portable DVB-T TV relies mainly on the product’s solution, particularly the digital TV IC. China makers source their solutions from various providers. The chipsets of Rockchip, Sunplus, Zoran and MStar usually go into the low-end models. Those from Texas Instruments, Freescale, Philips and MegaChips power midrange and high-end products.
Rockchip’s solutions are designed for units with 3.5 and 4.3in LCDs because of the resolution these can support. Those from Sunplus are suitable for models with 7 to 8in displays.
The cost of chipset solutions ranges from $12 to $20. Low-end and midrange versions dominate the portable DVB-T TV line.
Products with 3.5, 4.3, 7 and 8in LCDs are the mainstream for screen sizes up to 10in.
Several models offer additional functions such as Bluetooth, Wi-Fi, GPS, touchscreen, camera and personal video recorder or PVR. These are customized according to buyers’ requirements.
Designs in the low end support WMA, MP3, AVI, MPEG-2/4 and JPEG formats, PAL/NTSC/SECAM TV systems and USB 1.1 interface. They come with built-in speakers, earphone jacks and remote controls.
Midrange models are compatible with most formats, including AAC, Ogg Vorbis, BMP and GIF. They also support USB 2.0 and PAL/NTSC/SECAM systems. These integrate gaming and DVD functions, and a PDA, digital photo frame, SD/MMC/MS/CF/xD card reader, FM radio and e-book reader. Units have built-in stereo speakers, stereo earphone and microphone jacks, A/V I/O ports and remote controls.
High-end TVs offer add-on functions such as a camera, PVR, touchscreen, Bluetooth, Wi-Fi and GPS.
While portable DVB-T TVs are mainly free-to-air products, some export markets require devices for conditional access systems. China companies can customize models for these areas with special needs.
Due to the financial crunch and maker preference, the application of small displays in electronics will be limited this year, except for netbooks, according to Digitimes. A further prediction is that the supply of global-standard medium displays of 6 to 10.4in will grow by 20.8 percent in 2009. In comparison, that of 5in and smaller LCDs will increase by only 1.8 percent.
While makers foresee a stable output of LCD panels, they also expect slightly higher quotes on the component for at least the short term. DisplaySearch said the cost of 8in panels with 800x600-pixel resolution went up by $0.50 in early April this year. That of 7in panels with 480x234 pixels, however, remains stable.
Most suppliers use TFT LCDs instead of OLED panels, whose technology continues to change. They source LCDs from companies in Taiwan, South Korea and Japan, including BYD, HannStar, LG and Samsung.
Since portable DVB-T TVs have LCDs as a main component, companies conduct strict QC on panels. Post-assembly low- and high-temperature, performance and drop tests are common. Inspectors also check the chip soldering of components, especially after assembly.
In addition, R&D teams perform EMI, EMC and ESD tests during the design and trial-production stages.
Models for export meet CE and RoHS standards.
The share of digital models in overall TV shipments will exceed 90 percent in 2012, up sharply from 56 percent in 2007, according to iSuppli. Volume is expected to reach 248.9 million units, with turnover amounting to $135.6 billion.
The healthy DTV industry will also drive growth in digital components. Sales of DTV chips will double by 2011, DisplaySearch predicted.
China companies are emphasizing the development of digital wireless terrestrial TVs used in portable and mobile devices, including handheld, portable and in-car TVs. Suppliers offer portable DVB-T, ATSC and ISDB-T TVs. Among the three, DVB-T models have a wider market, which includes the EU countries, Australia, India, Singapore and New Zealand. ATSC TVs are mainly used in the US and Canada, and ISDB-T units in Japan.
Portable DVB-T models make up 60 percent of China’s portable digital TV output.
The industry is currently facing two major challenges: IPR or patent fees and competition from new DVB standards.
At present, IPR fees for DVB-T set-top boxes are added automatically in the export price of finished products, transferring the licensing cost to the buyer. For portable TVs, that is not compulsory even though the entire scope of DVB-T includes this device.
China suppliers usually shoulder those IPR fees, unless OEM customers indicate they are willing to take them on. Due to the relatively small export volume of portable DVB-T TVs, suppliers expect the situation to persist.
Companies supporting the DVB-T standard are also watching the development of DVB-T2 and DVB-H.
The DVB-T2 is considered the second-generation digital terrestrial television or DTT transmission system and projections are for a 30 to 50 percent capacity increase within equivalent reception conditions. The DVB Steering Board ratified the standard last year.
The first commercial DVB-T2 receivers are set for release this year.
So far the UK’s Office of Communications is the only organization in Europe that has expressed plans to adopt the standard. Still, makers expect it will be a focus area in the region’s digital broadcasting technology landscape over the next 12 months.
Another standard, DVB-H, is also being geared up for mobile phones and portable TVs. Compared with DVB-T, it is said to have better mobile reception, stronger anti-interference and lower power consumption. While this standard has a limited range of applications and a young technology, several companies and organizations are exploring future opportunities for the sector.
DiBcom, a French fabless semiconductor company that creates chipsets for low-power mobile TV reception, said switching between two standards in a particular area could reduce system efficiency. It recommends either adopting only one based on existing infrastructure or that theproponents of DVB-T and DVB-H work toward interoperability.
China has more than 50 suppliers of portable DVB-T TVs. Based in Guangdong, Fujian, Zhejiang and Jiangsu provinces, most produce other entertainment devices such as home set-top boxes or STBs.
Guangdong is the main hub for private locally owned companies.
While Jiangsu is an important industrial center, it primarily hosts foreign-invested suppliers and local trading companies. The outside investors are from the US, Europe, Japan, South Korea and Taiwan. Jiangsu’s stable manpower resource is an advantage.
Further, makers such as WSEC and Compal have technical support from partners.
The portable DVB-T TV industry in Taiwan is competing against mobile TV phones, portable media players or PMPs, and portable navigation devices or PNDs. Stand-alone TVs with a PMP are less expensive than mobile TV phones and PNDs, and makers also predict higher returns for the former.
The widening use of digital TV standards is boosting the portable TV sector. In addition to DVB-T, Taiwan suppliers are introducing ISDB-t and CMMB in their models, expecting an influx of users of these standards in South America and mainland china. DVB-H is another emerging trend but is still limited to mobile phones.
Companies offer portable DVB-T TVs with screens ranging in size from 3 to 11in. Displays come in a 4:3 or 16:9 aspect ratio for handheld device or in-car use. While mainstream models have 3.5 and 3.6in screens, products with 7 and 8in displays are gaining popularity.
Innovation technology expects 7in TVs to become the mainstream for car and outdoor applications, and the 8.4in or larger displays for homes and restaurants.
Another company, Asuka Semiconductor inc., plans to release 7in models for the elderly. New products from the company feature a touchscreen display. The T35 model has a 3.5in touchscreen and measures 100x70mm. The device weighs 73g and is 13mm thick. It also function as a digital STB and can be connected to other TV sets via a composite video connector.
High definition remains a trend and an R&D focus. Models with 7in and bigger screens usually have 16:9 displays.
The 3.5in models are priced from $65 to $70, and those with 7in screens are quoted at $70 to $80. The 8.4in models start at $100, and the 11in units range from $120 to $130. Touchscreen function increases the base price by $10 to $15.
Fewer than 10 companies in Taiwan release portable DVB-T TVs, even though several TV makers have the capability. The nascent digital TV industry has a comparably smaller global market than analog TVs. Suppliers, therefore, remain cautious in developing products in this segment.
Some of the major companies are Asuka, TSKY Co. Ltd, BenQ, innovation and ViewQuest.