Stand-alone, loaderfree models on the rise

	The HT-9000A in-dash 1-DIN model from Shenzhen Hantong has a motorized 7in touchscreen TFT LCD. It supports multiple A/V formats, iPod interface and Bluetooth connectivity.

Independent units are expected to break through the mainstream, which is still dominated by versions that support DVDs or CDs.

Increasing memory capacity and breakthroughs in decoder IC technology are driving trends in China’s car multimedia player industry. Until recently, all-in-one CD- or DVD-based models that run MP3, WMA, APE, Ogg Vorbis and WAV only as an add-on function prevailed in the market. The rise of 8 to 16GB storage devices and maturing decoding solutions, however, are fast-tracking the development of stand-alone units with no built-in CD or DVD mechanism. These access A/V files, including MPEG-4 and FLAC, directly from a USB flash drive or built-in card reader.

Requiring no loaders, the products cost less to manufacture and are therefore suitable to the entry-level segment.

A dedicated 1-DIN car MP3 or MP4 player, for instance, is a third or half the price of CD and DVD counterparts.

The lack of a loading mechanism reduces mechanical damage caused by vibration and shock created by the vehicle’s movement. It also eliminates the need to secure licenses, cutting down the outlay and aftersales failure rate further, and making quotes even more competitive.

Meanwhile, savings incurred from cost reductions are redirected toward enabling video capability. New models incorporate movie players, supporting formats such as RMVB, AVI, RM, 3GP, FLV, DAT and MPEG.

Touchscreens are typical as these enhance user interface and optimize dashboard space by removing buttons and dials.

Screens have moved from the usual 2 to 3.5in to the now-popular 6 and 7in. Some units have larger, motorized slide-up screens fitted into 1-DIN designs. Most come in detachable front panel construction as an anti-theft measure.

Models for the preinstalled sector will continue to dominate output of large suppliers, which have the resources to undertake long-term mass production and maintain TS 16949-certified facilities. Other companies will continue to explore the aftermarket.

In general, makers have a rosy forecast for the line. They nevertheless remain cautious about expansion plans this year, predicting revenue growth at a modest 30 percent. Adoption could also be affected by the availability of content, and here the Internet is a primary catalyst.

More makers are diversifying from the mainstream 1-DIN configuration and at the same time accommodating cosmetic specifications. Trends are leaning toward aesthetics that match the vehicle’s interior, although currently only large enterprises have the in-house capability for such requirement.

Smaller businesses usually outsource this aspect to minimize the overhead. They, however, plan to eventually offer free mold design services not just to long-term customers but all buyers. Mass-volume orders typically get special rates.

Mutifunctionality is another important development priority. Kinwei Technology (Hong Kong) Ltd has launched the 2-DIN KW-CM6202 model with a 6.2in touch-type TFT LCD. The player has a GPS navigation device, an AM/FM receiver, and a sensor for reversing, parking and rearview. RDS, analog TV, DVB-T, Bluetooth and handsfree functions are optional. Control dials and a keyboard can also be integrated.

Some suppliers make 1-DIN units with screens bigger than the 2 to 3.5in mainstays. Shenzhen Hantong Technology Electronic Co. Ltd’s HT-9000A series has a 6 to 7in display that slides up through an embedded miniature motor. It has a detachable front panel.

Featuring enhanced functionality, the stand-alone MT3008 model from Huizhou Desay Auto Electronics Co. Ltd supports more formats than conventional CD or DVD players. Aside from the usual MP3, WMA, APE, Ogg Vorbis, FLAC and WAV audio, the device runs AVI, RMVB, RM, 3GP, MPEG-4, FLV and DAT video files.

Entry-level variants are single-function MP3 or MP4 players in 1-DIN in-dash or cigarette lighter type configuration. Standard versions of the first type have AM/FM radios and enable playback via USB or memory card. Cigarette lighter varieties depend on the built-in audio decoder ICs and FM transmitter to decode and transfer signals to the in-car radio.

Midlevel in-vehicle multimedia players include CD and DVD units that also support VCD, MP3, MPEG-4, CD-R, WMA and JPEG formats. Such types have screens, multichannel car amplifiers, AM/FM radios, USB and memory card slots, RDS, Bluetooth and built-in games.

Upscale versions boast larger displays and even touchscreen technology. The popular optional features are digital/analog TV, GPS and parking assist system. Some companies can integrate on-board diagnostics or tire pressure monitoring system.

Prices are largely determined by the materials used, add-on functions and target sectors.

An entry-level 1-DIN car MP3 and MP4 player is $20 to $30, while the same type with a CD orDVD loader ranges from $40 to $100. All-in-one models, or those that run most A/V media, start at $100. These can have standard display or touchscreen at 6in or larger. Versions with add-ons such as GPS are more expensive.

Price increases are unlikely in coming months, according to interviewed companies. Quotes have generally decreased in the past few years due to competition.

To maintain profit margins, suppliers are controlling the number of models released periodically.

Makers, however, are monitoring fluctuation in electronic components following the near shortage of amplifier ICs in 2009, which almost doubled costs.

	The MT30008 model from Huizhou Desay has a 2.8in TFT LCD with 16:9 aspect ratio and 320x240-pixel resolution.

Manufacturers continue to sharpen their edge by leveraging price-to-performance ratio. Key processes are conducted in-house to optimize the overhead and control quality better. Stable costs have allowed even entry-level and midrange enterprises to offer durable products at rock-bottom quotes.

This is further facilitated by long-standing relationships with buyers and established aftersales channels. The time to market has significantly been reduced and order quantities are easily fulfilled as companies have ample stocks.

Most suppliers in mainland China source components, including LCDs and CD/DVD mechanisms, locally. Standard and panels are procured from AUO, CMO, HannStar, Prime View and Innolux in Taiwan, and LG and Samsung of South Korea.

GPS, Bluetooth, tuner, amplifier and USB controller ICs are imported from SiRFstar, CSR, Broadcom, Samsung, STMicroelectronics and ROHM. Mainland-owned Foryou and Coagent use in-house-developed loaders for upscale models, and sell these separately to domestic makers of car multimedia players.

Other manufacturers purchase the component from Sanyo and Sony, which offer them at costs suitable for the entry-level and midrange markets. Chip solutions, meanwhile, are from MediaTek and Sunplus.

Regardless of target market, car multimedia player suppliers in China were adversely affected by the 10 to 20 percent decline in global sales of vehicles due to the financial slump. Hardest hit was the preinstalled sector exporting to Europe and the US.

To recoup losses, makers are increasing shipments to South America, Southeast Asia and Russia, where the automotive segments are rapidly expanding.

Shenzhen Weidiye Electronic Co. Ltd is beefing up overseas shipments to the Asia-Pacific region. It is offering low-priced models, including entry-level single-function 1-DIN car MP3/MP4 players, specifically to India.

Outbound deliveries from Velex Technology Ltd go to Russia and Australia. The company focuses on varieties without a disc mechanism, which account for about 30 percent of output.

Kinwei and Desay, and even key supplier Foryou, are banking on stand-alone units to revitalize the line in coming years.

The influx of high-capacity memory cards and flash drives has resolved most concerns about storage, and enhanced-definition LCDs have improved user interface, all of which bode well for the industry.

There are more than 300 manufacturers in China, the majority of which offer the complete range. While many are mainland-owned, some of the biggest exporters are Taiwan and Hong Kong companies. Small and midsize enterprises concentrate on OEM and ODM, targeting the aftermarket.

Only leading players, including Foryou and Coagent, have the capability to set up domestic sales channels for their own brands.

Guangdong province is the primary manufacturing center for the products, thanks to its mature supply chain. Major enterprises Foryou, Shenzhen Hangsheng and Coagent, all of which have an annual output exceeding 1 million units, are based there.

Fujian province and Shanghai are also regarded as key hubs.