Turntable players

	The DAV-368A from Zhuhai Yali is a DVD mini component system with a 4.2in LCD screen.

DVD-based models dominate output, boasting TFT LCDs and multiple interfaces for connectivity with various media.

Mini component systems manufactured by China suppliers in the last two years have more multimedia handling capability. The product line has evolved from the cassette player to CD and CD/VCD, and further on to the mainstream DVD configuration with additional interfaces that provide connectivity to a variety of other devices, including MP3 players, USB drives and storage cards.

To complement video playback, makers have also introduced models with TFT-LCD screens with 7in being the dominant screen size over 3.5in and 4.2in. Further building on the multifunctionality trend, some makers are also integrating TV tuners in their products. The popularity of the iPod has also paved the way for the inclusion of docks, which in new and forthcoming models will be compliant with the latest iPods with video playback.

Despite these development strides, China manufacturers remain open to buyer preferences, offering entry-level to high-end models. Units with cassette players/recorders, for example, continue to be produced even as product development efforts have moved to the digital trend in A/V and multimedia functionality.

Prices are expected to increase in 2008, due to spiraling production costs brought about by currency, material and labor factors.

To keep up with the trends in home entertainment electronics, manufacturers of mini component systems in China press on with feature upgrades. For one, they are sustaining the release of models with more built-in multimedia interfaces, targeted at the high-end market for higher profits. This connectivity feature is now standard with USB 2.0 ports and card slots, which enable plug and play of MP3 and WMA files stored in external USB storage devices, and MS, MMC and SD memory cards.

Models with iPod docks have also been launched since early 2007, to draw the captive iPod market into the mini component system line. To sustain buyer interest, some companies like Zhuhai Yali Industrial Co. Ltd are developing models that are compatible with the latest iPods with video playback. Zhuhai Yali introduced its model in H1 2008. Built-in screens are another popular feature addition to DVD mini component systems. Most screens come in 7in, although buyers can also find 3.5in and 4.2in models. Zhuhai Yali launched DVD mini component systems with 4.2in and 7in TFT-LCD screens in H1 2008.

Other value enhancements are being introduced. These include TV tuners, which Tak Champ International Ltd has embedded in its products with TFT-LCD screens. Dongguan Synst Electronics Co. Ltd, on the other hand, is focusing on integrating Internet radio functionality and will release its new CD mini component system with the feature in 2008.

China suppliers' entry-level DVD mini component systems are compatible with DVD, VCD, CD, MP3 and JPEG formats with MPEG-4/DivX support offered as an option. Other typical features are built-in Dolby Digital (AC3) decoders, AM/FM radios, NTSC and PAL compatibility, alarm clock functions and infrared (IR) remote controls. Connectors include optical and coaxial audio output and S-Video, Y/Cb/Cr component video output, and microphone and auxiliary inputs. The majority of entry-level models have 2ch systems, with 2.1ch versions also offered as added option. Some products also keep the built-in cassette player/recorder function among standard features.

Midrange models mostly integrate more multimedia interfaces for digital content playback. iPod docks, USB 2.0 ports and flash memory card readers are mainstream features in this bracket.

TFT-LCD screens, on the other hand, are mainly what sets high-end versions apart from entry-level and midrange DVD mini component systems.

At Zhuhai Yali, mainstream DVD mini component systems use Sanyo's decoding solutions and loaders. These support MPEG-4, DVD, SVCD, DVCD, VCD, CD and MP3 formats, and have built-in FM radios and alarm clock functions. Their connectors are optical and coaxial digital audio outputs, L/R stereo audio output and auxiliary audio input. The models are mostly in 2ch and 2.1ch systems, and can be upgraded to 5.1ch home theater systems with additional speakers. The company continues to carry the cassette player/recorder as a standard feature in some of its models.

Zhuhai Yali also offers models with multimedia interfaces such as iPod docks, USB ports and SD/MMC/MS slots.

Tak Champ's mainstream DVD mini component systems adopt Sunplus' decoding solutions and Samsung's loaders. Most of the models are 2ch systems with 2x30W power output; 2.1ch systems are also on offer. The company also produces mini component systems with SD/MMC/MS card readers.

	The TK-H608 from Tak Champ is a DVD mini component system with a built-in 7in TFT-LCD screen.

All interviewed makers have in-house product development capabilities and employ at least 10 R&D staff. They carry out mainly PCB layout and cosmetic and mold design, while some larger companies can handle software design as well. Other companies also benefit from the technological support extended by their IC suppliers.

Dongguan Synst has 20 R&D engineers—six electronic engineers, four cosmetic engineers, four process engineers and six assistant engineers—who carry out in-house product development and production procedure control. For mold design, the company has a cooperation arrangement with a design house in Hong Kong. It invests about $800,000 in R&D annually. New product releases are between six and eight a year. Dongguan Synst mainly uses Sanyo lasers, and Toshiba, Samsung and Sunplus solution ICs.

Tak Champ employs 15 engineers at its Shenzhen facility. The team handles cosmetic, structure and software design. Its current R&D focus is on audio quality and power output.

Most interviewed manufacturers forecast a price increase during 2008, with estimates ranging from 5 to 10 percent. The yuan's continuing appreciation against the US dollar, and mounting material and labor costs continue to impact production costs. This is further compounded by stricter IPR fee policies, domestic inflation and labor shortage.

High-end CD mini component systems are quoted from $40 to $80. Unlike entry-level and midrange models, these boast additional features such as built-in AM/FM radios and alarm clocks, blue backlit LCDs and IR remote controls. Some have more advanced features such as touchscreens, NXT flat speakers and RDS radios.

For better acoustic performance, Dongguang Synst uses coaxial speakers from So-voioe in its high-end products. Coaxial speakers, which are widely used in home theater systems, cost an additional $5 per speaker.

High-end DVD mini component systems are priced from $70 to $150. These have additional video output ports and display panels. Their multimedia interfaces are USB 2.0 ports, SD/MMC/MS card readers and iPod docks.