Talking caller ID phones

	The C123A800 from mainland China's Gaoxinqi is a voice caller ID phone with a SIM card reader and 250-entry phone book.

Call waiting, handsfree supported; wireless and larger memory in some high-end units

Voice caller ID phones comprise a minority segment of the phone supply markets in mainland China and Taiwan. The sluggish performance of its mother product line—caller ID phones—in the past few years has slowed down the adoption of voice-enabled models by both buyers and suppliers. The integration of caller ID functionality into most phone products, both wired and wireless, also reduces the market potential of standalone voice caller ID phones in particular and caller ID phones in general.

Many caller ID phone makers have exited the supply market in mainland China. The present supplier base is 40 percent smaller than its 70-company size several years back. Active caller ID phone players devote only about 5 to 10 percent of their caller ID phone production to voice caller ID phones.

Taiwan’s caller ID phone manufacturing industry has been sluggish over the past few years, as makers continued moving to other product lines to stay in business. Product development in the voice caller ID phone is practically at a standstill. Companies are more likely to explore VoIP and cordless phone technologies than invest in caller ID phone enhancements or new product to boost what many see as a sunset industry.

Notwithstanding the slow market, currently available voice caller ID phones on the market pack a slew of features and functions. Mainland China makers offer models with advanced caller ID functions. Some units support handsfree operation, larger screens, speakerphone, alarm clock, calendar, games and calculator.

Wireless models have started emerging as well. Some makers also bundle walkie-talkie, intercom and multiparty conferencing capabilities.

Mainland China has about 50 manufacturers of caller ID phones, but not all of the suppliers are producing voice caller ID phones in large volumes. The integration of caller ID functionality into most phone products has increasingly blurred the distinction between product lines in mainland China. The decline of wired fixed-line phones has also contributed to the drop in demand for caller ID phones and slowed down adoption of voice-enabled models. In recent years, the shift to wireless fixed-line phone technologies, such as DECT and 2.4GHz phones that already incorporate caller ID functionality, has further eroded the caller ID phone category.

Voice-enabled caller ID phones still comprise a minor line in the phone supply markets in mainland China despite the—or because of the—maturity of the caller ID phone segment. Voice caller ID phones typically take up about 5 percent of makers’ caller ID phone output.

The leading players in the line are BBK Communication Equipment Corp. Ltd, TCL Communication Equipment (Huizhou) Co. and Shenzhen Gaoxinqi Technology Co. Ltd. These manufacturers capitalize on their years of experience in developing, manufacturing and marketing phone products.

Mainland China continues to be the main production center for voice caller ID phones in Greater China. Fewer Taiwan companies are actively producing their caller ID phones in Taiwan, with companies shifting their emphasis to other lines and having moved their production to mainland China.

TCL produces less than 30,000 voice caller ID phones a month, a small percentage of its 500,000-unit monthly output of caller ID phones. It has a monthly capacity of 700,000 units for caller ID phones. In 2007, TCL produced about 6 million caller ID phones, 2 million units of which were exported.

TCL outsources mold making and plastic injection molding, and conducts SMT, assembly and packaging in-house. It sources components and raw materials from suppliers in Guangdong.

BBK has a caller ID phone production capacity of 300,000 units, and its average monthly output is 200,000 units. It makes 10,000 voice caller ID phones a month. The company can conduct all manufacturing processes in-house. It has adopted TQM and complies with ISO 9001. It also plans to adopt Six Sigma.

Gaoxinqi’s average monthly caller ID phone output is 600,000 units, against a monthly capacity of 700,000 units. The company can handle all production processes in-house. It now has 160 models of caller ID phones, including voice-enabled units.

However, the company’s product development focus is on DECT and combo phones.

Caller ID phones are generally considered a sunset industry in Taiwan. Most makers have left the line due to the mature technology and stiff competition, especially against mainland China suppliers. Although the low technology barrier allowed new players to gain space rapidly, more suppliers are switching to cordless phone products, particularly 2.4GHz and DECT phones. Many companies are also now focusing on VoIP, auto attendant systems and other related products, and do not have immediate plans to stimulate the caller ID phone line.

Companies that continue to market products under the caller ID phone banner include Kingtel Corp., Tecom Co. Ltd, Telewell Electric Co. Ltd and Mytech Technology Co. Ltd. These players say that prospects for caller ID phones are still bright in developing markets, including mainland China, India, South America and the Middle East.

Nevertheless, featured Taiwan companies said that they will not focus on the development of caller ID phones in the coming months because there is no demand for special or improved caller ID phone models. Only Hetronic Communication Inc. claims that it plans combination caller ID and Bluetooth phones by the end of 2008.

Tecom’s long-term product development focus will be on WiMAX and other long-range wireless networking technologies. The company is also involved in business communication systems, wireless communication systems, infrastructure transmission systems and broadband communication systems.

Kingtel has shifted some of its efforts to cordless phones. Mytech uses voice caller ID phone technology to develop answering mailboxes and is also increasing its emphasis on other products such as 2.4GHz DSST cordless phones, home message voice memo recorders, voice recognition products and mobile phone accessories.

Most Taiwan caller ID phone suppliers have their own factories for assembly and testing, and outsource molding to Taiwan or mainland China subcontractors. Kingtel has an R&D center in Taipei and a factory in Huizhou, Guangdong, mainland China.

Uwin Technologies Co. Ltd has a factory located in Hsinchu. Hetronic outsources caller ID phone production to another Taiwan company.

Voice caller ID phones from mainland China feature FSK/DTMF compatibility, call waiting, incoming/outgoing call check, callback, last 10-dialed number display, handsfree and 1-key dial. Mainstream models can store from 40 to 70 incoming numbers, and 10 to 30 outgoing numbers. Some models have incoming call number voice announcement in local language, predial and outgoing message (OGM) with 1-touch and 2-touch memory.

Some high-end units also incorporate alarm clock, calendar, calculator and games. Other models have music ring tones and optional music on hold. A few new releases combine digital photo frame function, with most models featuring 1.8in color screens.

Midrange voice caller ID phones, many of which already feature wireless connectivity, typically come with 1.5in color screens. These units can save 90 to 200 names in the phone book. Some models feature calculators, SIM card readers and TAD.

Entry-level models from the mainland have basic phone functions, monochrome screens and call waiting. These models have memory for up to 50 names.

More voice caller ID phones in Taiwan now feature large screens. Midrange and high-end phones from Taiwan’s makers generally list 99 missed call, 20 answered call and 20 dialed numbers.

More wireless models are in the pipeline. More makers in mainland China are also offering voice caller ID phones that incorporate earphone jacks, and walkie-talkie and intercom functions.

Some models, particularly in the high-end segment, already support triparty conversation and GAP. A growing number of units come with remote controls.

These value-added features are considered mature and do not increase the end-product price substantially. However, VoIP, SMS, MMS and Web browsing capabilities will raise the price of a voice caller ID phone.

In Taiwan, suppliers have been integrating TADs and remote control function. Remote control function usually supports RF remote alarm, emergency call, auto play of recorded message, and 20s recording message time.

Prices of caller ID phones—and voice caller ID phones in particular—have been declining in Taiwan in the past years. Makers expect prices to slip further in H2 2008 as competition continues to tighten.

In mainland China, prices of caller ID phones are on the uptrend due to the increasing cost of raw materials. Entry-level voice caller ID phones in mainland China are quoted from $3 to $8 each. Midrange models are priced from $8 to $16 per unit. High-end products with multiple functions, such as wireless connectivity, SMS, color screens and VoIP, can be quoted up to $40 or higher.

Some companies such as Gaoxinqi plan to keep their prices stable this year. Wired caller ID phones from Gaoxinqi range from $3 to $15 per unit.

Nothwithstanding stiff competition, Taiwan makers see a rosy future for their voice caller ID phones, especially those bound for developing markets such as mainland China and India. This is largely because of rising demand from these areas beginning 2007. Other key Taiwan export markets are South America and the Middle East.

The major markets for both caller ID phones and voice caller ID phones from mainland China are Asia, Latin America and Africa.

TCL ships about 40 percent of its basic and voice caller ID phones. Its main market is India, followed by the Middle East, Southeast Asia, Vietnam and Sri Lanka. The company mainly offers ODM services, but also distributes its products under its own brand.

BBK exports all its caller ID phones to Asia and Africa. The company works with an OEM partner in Russia and distributes caller ID phones under its own BBK label in the Middle East.