Mico is a C-Cube customer..............................
globalsources.com
Production focuses on
basic desktop models
MP3 support, digital video recording are finding their way into mainstream supply as makers strive to increase overseas orders
With the dust settled from the initial stampede into the DVD player line, Hong Kong has emerged as a reliable source of quality DVD players. These models generally feature 500-line resolution and are compatible with CD-Rs, CD-RWs and, increasingly, MP3 formats. Prices have fallen over the past six months to around $140, although $100 models have yet to appear.
Buyers looking for OEM and ODM producers will be spoiled for choice, as only a very few suppliers are marketing their own brands. One of these is Mico Electric (Hong Kong) Ltd, which has won recognition in Europe for its Mico brand of DVD players.
With demand for Hong Kong- and mainland China-made products set to grow by 60 percent to 80 percent this year, many makers say they are being stretched thin. "With our production capacity maxed out, we expect output to remain stable this year," said Sarek Chan of Gynco Electronics (HK) Ltd. Others are making an extra effort, with GVG Digital Technology Holdings (HK) Ltd predicting its output will increase by 50 percent in 2001.
Most output still is targeted at OEM and ODM markets: Eighty percent to 90 percent of Mico Electric's production is for ODM orders, and Samwin Hong Kong Ltd devotes 30 percent of its output to OEM orders.
Many makers target sales in Europe and the United States. Mico Electric ships 55 percent of its output to the U.S., and Gynco sells 20 percent to 25 percent of its output to European countries. Demand from other regions such as Asia, South America, South Africa and Australia is small, but growing. "We expect Japan to take up 10 percent of output this year," said Mico Electric's general manager Joe Chen. Gynco is tapping a market closer to home. It sells more than 50 percent of its products to mainland China.
$100 DVD players prove elusive
Despite rumors that new DVD player models will be available for $100 by 2001, the lowest price now is about $140 per unit, suppliers said. Makers interviewed said $100 pricing could be possible only for out-of-date or entry-level models, such as versions with two audio channels instead of 5.1-channel surround sound. "A two-channel model is approximately $10 cheaper than the 5.1-channel model," said marketing manager Peter Ho of GVG.
Buyers can go for the next best thing: low-end versions going for $130 or less. Sample prices include:
$123 to $130 from Samwin
$125 to $135 from GVG
$130 to $140 from Gynco
Products under the Mico brand from Mico Electric are a tad pricier, at $155 and above. However, buyers can look forward to a 5 percent drop in the first half of this year, according to Chen.
Bringing component production in-house
The good news keeps coming for cost-conscious buyers: Costs of critical components, which are mainly sourced from the United States and Japan, dropped 30 percent last year. Gynco's Chan believes these will fall again by 10 percent in the first half of this year.
Makers are attempting to further control fluctuating costs by producing important components in-house. By the first quarter of 2001, Mico Electric will produce DVD player servos in-house, leaving only laser heads to be sourced from outside, said Chen. Samwin plans to develop in-house a decoder chip by the first quarter of 2001, which could reduce production costs by 10 percent.
Focus on the basics
Most Hong Kong makers are eschewing additional functions to concentrate on good-quality, basic models that support CD-R and CD-RW formats, with some models also reading MP3-CDs.
Some notable exceptions are GVG, which offers a plug-and-play model with an AM/FM radio and an amplifier, and Mico Electric, which introduced a model with six-speaker output and an onscreen equalizer. Both Mico Electric and GVG will offer DVD players that support Internet browsing by the second or third quarter.
Some buyers from Western Europe also look for CD-G playback for karaoke. However, Hong Kong makers don't yet offer this format, said Chan of Gynco.
Digital video recording is available from Mico Electric, which has introduced a new model with a VDR function in the first quarter of 2001. The company is also developing a portable DVD player with a 5.8-inch TFT display.
With development costs prohibitive, Hong Kong makers shy away from producing more cutting-edge products, such as DVD recorders. In addition, they have yet to offer DVD audio players. "The trend toward producing DVD audio players has only recently started in Europe," said Gynco's Chan. However, Mico Electric plans to have a car DVD video and audio player launched by winter 2001.
Video, sound get a tune-up
Makers aim to improve on the standard 500-line resolution this year, mostly by using progressive scanning. Gynco and GVG will both offer progressive scanning players this year.
Mico Electric plans to use a new chipset from C-Cube for progressive scanning and DVD audio features by the second quarter of 2001. The chipset is low-cost, said Chen. To further improve its products' sound quality, Mico will also incorporate an SRS 3D sound chip in its new DVD player |
