Portable DVD player manufacturers in Greater China — mainland China, Hong Kong and Taiwan — are forecast to export at least 8.6 million units in 2006, or more than half of the estimated global shipments of 13.5 million units. Greater China's production is based on the aggregate annual output estimates of 27 key manufacturers covered in this report.
The growth of the line is driven by decreasing product prices, enhanced functions and increased acceptance among buyers, despite the threat to the line's market share posed by notebook PCs and portable media players.
There are more than 100 active manufacturers in Greater China, ranging from small- to large-scale manufacturers. Most of these companies are essentially assemblers that import key components, including LCD panels, chipsets and DVD mechanisms.
Some of the trends observed in Greater China's portable DVD player industry are:
• Makers' aggregate export volume is forecast to reach 8.6 million units in 2006, a growth of 28 percent from 6.7 million units in 2005.
• The number of active makers in the three regions has declined in recent years, with no new entrants. However, the companies that remain in the line demonstrate strong capability in product customization.
• Prices are forecast to decrease by 10 percent due to competition and decreasing costs of LCD panels and chipsets. Price differentiators include panel brands, DVD solutions, disc loading mechanisms and technology licenses.
• Makers are improving product options by introducing larger screens and slimmer form factors, and adding features such as memory card readers, network interfaces and TV tuners.
• Almost all companies produce notebook- and tablet-type models with LCD screen sizes ranging from 6in to 10.2in. Mainstream models come with 7in LCDs with 16:9 aspect ratio, a remote control, built-in rechargeable Li-polymer battery, USB port, S-video and component video output, optical and headphone audio output, and built in stereo speakers.
• Formats supported are MPEG-4, DivX, DVD, DVD±R, DVD±RW, CD, VCD, SVCD, MP3, CD-R, CD-RW and Kodak Picture CD.
• Makers face multiple challenges, including increased costs due to intellectual property rights; stringent product safety requirements, such as on electromagnetic compliance (EMC), imposed by export markets; RoHS compliance; and power consumption restrictions.
The Industry Background section discusses the profiles of industries in mainland China, Hong Kong and Taiwan. It identifies manufacturing hubs, types of products available and export capabilities.
Industry Overview
DVD players and recorders will have a combined number of 176.6 million units sold worldwide in 2010, up from 140.8 million units in 2005, according to market research analyst In-Stat. The strongest gains will be made in portable DVD players and automotive DVD players.
The global shipment of portable DVD players reached 7.88 million units in 2004. The market grew by 46 percent year-on-year with total shipments reaching 11.48 million units in 2005.
The shipment of portable DVD players will reach 13.46 million units in 2006, to 15.57 million units in 2007 and to 16.85 million units in 2008, according to a research by IDC.
According to Global Sources' Consumer Electronics China Industry Outlook, the main drivers for this growth are gradually falling prices, strengthening of product functions and increasing acceptance among consumers.
Domestic demand on the mainland is also anticipated to pick up rapidly because of the influx of local brand manufacturers and decline in prices of mainland-made portable DVD players, which are 30 percent to 50 percent cheaper than imported models.
Projected increases in overall production and stable raw materials and components supply are fueling a decrease in product prices.
Manufacturers are differentiating their portable DVD players by incorporating larger screens, slimming down dimensions and adding features such as memory card readers, network interfaces and TV tuners.
Supplier Profile
Addnew Technologies Ltd
Addnew Technologies Ltd is a privately owned mainland China company established in 1999. Its head office is in Shenzhen, Guangdong province. The company focuses on the development and manufacture of A/V products, including DVD players, portable DVD players, VCD players, digital portable audio systems, vacuum tube speakers, 2.1ch/ 4.1ch/ 5.1ch multimedia subwoofer systems and all-in-one home theater systems.
Addnew began producing and exporting portable DVD players in 2002. In 2005, Addnew exported a total of 22,000 units of portable DVD player equivalent to US$2.53 million. In 2006, the company hopes to increase exports of portable DVD players by 40 percent. It also plans to expand its portable audio systems line by 30 percent.
Addnew's overall exports were valued at US$70 million in 2005 and are expected to increase by 25 percent in 2006.
Buyer's label business accounts for 50 percent of exports; ODM, 30 percent; and OEM, 15 percent. The remaining 5 percent comes from own-brand marketing.
Western and Eastern Europe occupy the top ranks in Addnew's major overseas destinations. The two markets absorb about 30 percent each of total portable DVD player exports. Other destinations are Oceania, Central and South America, Asia, the Middle East and North America.
Manufacturing Capability
Addnew has two factories. One is used for producing DVD players, portable DVD players and other laser products. The other is for producing speaker systems. Addnew employs 3,000 people, including 2,300 production workers, 300 QC workers and 100 R&D engineers.
Addnew's 20,000sqm facility in Shenzhen has a four-story production building and a four-story dormitory. There are about 600 employees in the factory handling eight production lines.
For portable DVD players, the factory has a monthly capacity of 50,000 units a month while the monthly output is 2,000 units.
Addnew handles cosmetic design, SMT, PCB sub-assembly, final assembly and QC in-house while mold making, plastic injection molding, painting and silkscreening are outsourced to partner factories.
All this column of information contained in China Sourcing Reports is the result of original, independent and impartial research conducted by Global Sources analysts.
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