HDTV, IPTV and video recording push the development of specialized and combo models. Basic units are targeted at entry-level market.
The demand for digital TV (DTV) set-top boxes (STB) with wider applications is driving makers to develop dual-mode models that integrate both DVB-C/T and IP standards.
High-end models, such as PVR-enabled models, are Ethernet-compatible, adopt dual-chip design, support multi-system standards and offer high-definition capability.
Mainstream DTV STBs from mainland China support MPEG-2, MPEG-4 and H.264 decoding. Upon customers' requirements, makers also develop units that adopt both MPEG-2 and H.264 decoding—though these units have significantly higher prices than basic models.
Makers that produce high-resolution DTV STBs emphasize the development of models that support 1080i HDTV standards.
Network-capable models use Ethernet interface more widely than phone line and cable solution.
Makers cited that the demand from Europe and US customers for digital TV conditional access (CA) separation models is driving the development of DTV STBs with separate host and card functions.
For the entry-level and low-end markets, makers offer basic models that adopt single-chip solution and feature specialized functions.
Prices start at $20 for basic units. High-end models, on the other hand, sell for as much as $140 each. Stable prices are foreseen for 2007.
New models feature multiple functions, connectors
R&D efforts in the high-end DTV STB segment center on multifunction integration, dual chip adoption, high resolution and network interactive design. Multifunction features include multiple connectors, VoIP support, Internet applications, flash player, MP3 player and personal video recorder.
Basic models adopt single-chip solution
The majority of basic DTV STBs from mainland China manufacturers adopt single-chip solution, support PAL/NTSC/SECAM systems, and feature basic receiver function and EPG function. Some have program editing capability, such as add favorite, sort and remove functions. PIG function has also been added in basic models.
R&D in this segment is directed toward the development of models with high price-to-performance features using optimized chip solution.
Prices dependent on decoders, add-on functions
The prices of DTV STBs from mainland makers are dependent on decoders used as well as on value-added functions.
A significant part of product cost is accounted for by hardware and software costs. Chips cost from $10 to $35, and are sourced mainly from STMicroelectronics, LSi, Sunplus and NEC. A few leading makers use their own chip.
Output to increase by more than 50 percent
Mainland China makers are optimistic about the increasing demand both from overseas and domestic markets. They expect total DTV STB output and exports to increase by more than 50 percent and 20 percent in 2007.
Makers upgrade to RoHS-compliant production
The EU's RoHS and WEEE directives are not a major challenge for mainland China makers. Export-oriented makers have upgraded their production lines, trained workers, and adjusted raw material and component sourcing strategies to comply with the standards. Some makers have also purchased RoHS-compliant test machines for raw material inspection and end-product testing.
Some products undergo additional tests against vibration, high/low temperatures, salt spray and impact. Most models bear FCC, CCC, CE and UL approvals.
Note: All price quotes in this report are in US dollars unless otherwise specified. FOB prices were only as reference prices at the time of interview and may have changed.
