Taiwan's Partner has released the M1-POS, a handheld POS system capable of 802.11b GSM/GPRS and CDMA transmission.

Wireless, handheld models account for the bulk of makers' output. Taiwan makers focus on providing efficient after-sales service to boost business.

The point-of-sale (POS) system industries in Taiwan and mainland China are poised for significant growth in 2007. The huge market of upcoming applications like mainland China's taxation control system, the 2008 Olympic Games in Beijing, the 2010 World Expo and the EMV move of major credit card companies, are expected to boost both Taiwan and mainland China makers' production of POS systems in the next 12 months.

In 2008, mainland China is expected to surpass Japan as the world's largest POS system market, according to a report from IHL Consulting Group, a research firm focusing on the global retail and hospitality industries. This finding is attributed to the upcoming Olympic Games. The research firm estimates 2 million to 3 million POS systems in operation in the mainland during 2008.

There are more than 200 POS system makers in mainland China, most of which are small- to mid-sized players clustered in Guangdong province. Makers offer a complete range of POS equipment, including POS terminals, barcode scanners, barcode printers, cash drawers, receipt printers and cash registers, most of which come in customizable designs.

Many makers place heavy emphasis on R&D, developing proprietary software for their systems. Other R&D priorities include development of Internet-based units, wireless models and those designed for the above-mentioned new applications.

According to interviewed Taiwan companies, Taiwan currently accounts for 15 percent to 20 percent of the global POS system supply. Taiwan has 15 to 20 makers, most of which concentrate on R&D activities. Product development centers on slim, wireless and portable models.

The thin supplier base is partially attributed to a few barriers that new entrants face--orders can be in small quantities but of diverse applications, and the requirement to sustain parts of previous models in order to guarantee years of supply to customers. However, in view of the promising industry outlook, interviewed Taiwan makers expect a growing number of new entrants in 2007.

In order to avoid price competition with mainland China makers, Taiwan companies position themselves as IT solution providers. Most companies believe that providing efficient after-sales services will boost profits. They outsource certain parts of production to keep prices competitive.

	The MiniPOS-2600 is a series of compact POS terminals offered by Mon Star in Taiwan.

Established in 1996, Sunyard develops and manufactures POS terminals, payment security systems and related software. The company is a subsidiary of the Shanghai-listed Hangzhou Sunyard System Engineering Co. Ltd.Sunyard has a monthly capacity of 12,000 POS systems, of which 10,000 units are actually produced. Wireless models account for 75 percent of the monthly output. One of the company's wireless models is the S520 series of mobile POS systems that meet EMVCo level 1 and level 2 specifications. Featuring a dual-processor design, each unit is equipped with an 8MB SRAM memory chip, supports CDMA and SMS transmission, and is embedded with a 3DES data security module. It has a PIN pad and a 7.4V Li-polymer battery.

Sunyard exports about half of its output to more than 20 countries. It boasts four years of offshore software outsourcing experience and caters to international clients such as IBM, Levi Strauss and Japan's Kansai Sequence.

Newland is an official hardware supplier to China UnionPay. The company's estimated POS system sales in 2006 doubled that of 2005. It has also launched an e-ticketing service along with China Mobile and China UnionPay.

Newland produced 8,000 POS systems every month in Q4 2006, out of a 10,000-unit monthly capacity. About 80 percent of the company's output comprises wireless models.

In H1 2007, the company is scheduled to increase monthly capacity to 12,000 units and forecasts monthly output to average 10,000 units, up 25 percent from Q4 2006. Export volume is expected to double in H1 2007 over Q4 2006.

Newland's NL8300 is a mobile POS system that enables CDMA, GPRS, and SMS transmission, as well as voice transmission. The product is equipped with a 512KB SRAM and 4MB flash memory. It is powered by a 1,400mA Li-polymer battery.

Newland's 6200 WBT is targeted at finance, insurance, telecommunications, academic and transportation segments. The system includes a color CRT or optional LCD screen and a PS/2 keyboard and mouse. It runs on Windows CE 4.0 and supports RDPv5.1 and ICAv6.0 protocols. It is embedded with IE5.5 for secure direct connection to ICAv6.0.

The 6200 also supports automatic server connection, logging and application execution, online software upgrading and offers optional GSM/GPRS wireless communication.

Eutron started business in 1998 with a group of technical experts and experienced professionals from the electronic cash register industry. The company runs a factory with a 10,000-unit monthly capacity for POS systems. Seventy percent of the company's monthly output comprises wireless models.

Eutron possesses in-house capabilities in designing and manufacturing cash registers, POS systems and software. One of its R&D projects is the GEA-1 POS system, which comes with a touchscreen TFT color monitor and integrated speakers. It supports graphics, image and report printing. Eutron exports about 90 percent of its total output to North America and Europe. Its POS systems are shipped to wholesalers, which channel its products mainly to supermarkets, department stores and restaurants.

Prices of POS systems from mainland China makers range from $150 for entry-level models to at least $900 for high-end integrated systems.

"Prices depend heavily on the costs of major components like the LCD monitor, processor and memory modules," says manager Frank Jian of Eutron. However, most mainland makers agree that prices will be stable for the next six months.

In Taiwan, a complete POS system costs $1,000 on average. Entry-level products may come with Celeron or processors of equivalent level, 40GB HDDs and 256MB RAM. These models are priced between $700 and $800.

High-end products may be equipped with a Pentium 4 processor, 80GB HDD and up to 516MB RAM. These models are often priced at $1,100 to $1,300.

In addition to the above factors, prices will also vary with customers' order volumes. RoHS implementation, which raises production cost by about 5 percent, will not be a major problem given the positive outlook for the industry.

	The Q-POS815 series of POS terminals from Taiwan's Heisei features a 15in touch screen, cash drawer, bar-code scanner and optional card reader.

Since the hardware is already there, Taiwan makers concentrate on the integration of software and hardware capabilities to meet customers' requirements. As a tool for service-oriented industries, POS systems in Taiwan are gradually being offered as customer premises equipment, a trend that a growing number of makers are following.

Taiwan-based Partner Tech Corp., seeing a big potential in mainland China's retail market, has established facilities there since 2002.

The company boasts 10 years' experience in manufacturing POS systems. It has 10 branches worldwide, seven of which are located in mainland China, to provide on-site services for its customers.

Partner released an advanced handheld POS terminal in November 2006. The M1-POS has a 3.5in touchscreen monitor, and is capable of 802.11b, GSM/GPRS and CDMA transmission. It has an add-on printer and 0.6W speaker, and weighs 400g.

Partner produces 10,000 all-in-one systems monthly and exports 95 percent of its output. Europe accounts for 30 percent of shipment; North America absorbs 35 percent, and Asia also takes up 35 percent.

The company engages in own-brand business. Products that carry the brand name Partner account for 70 percent of the company's total output.

Mon Star Information Corp. started its business as an international purchasing office of various computer products. The company has formed an alliance with factories in Taiwan, R&D houses and repair centers in Europe and the United States to strengthen its services. Most of its clients are system integrators.

Mon Star offers the MiniPOS-2600, a series of compact POS terminals. It features a fan-less design with a thin docking station. It provides a 3.5in hard disk drive (HDD) and a CompactFlash slot for expandable memory. The smallest among all models in the series measures 220x313x288mm.

Heisei Electronics Co. Ltd's Q-POS 815 features Wi-Fi connection. It is an all-in-one POS terminal equipped with Pentium 4 processor and a 15in touchscreen LCD monitor. It is also built with a card reader function upon customer's request.

Heisei focuses more on OEM manufacturing. Besides eight lines producing POS systems, industrial panel PCs and kiosks, the company also has lines producing PCI cards and other computer peripherals.

Established in 1989, Heisei started producing industrial PCs in 2000. It later continued to develop simpler panel PCs and POS systems.

Heisei's products are distributed to major markets in North America, taking up 51 percent; Europe, 33 percent; and Asia accounting for 16 percent of shipments.