Taiwan’s Kingtel offers the 6011DS, which can support DECT and DECT 6.0.

Greater China’s suppliers of DECT phones are packing new and more value-added features in their DECT phones to reinvigorate the line. Several companies in Taiwan and Hong Kong have developed DECT 6.0 phones, whose technology promises better performance. Many makers project that DECT phones integrating VoIP will soon rule the market, and initial steps toward this include releases that support Skype or SIP, or both. Some of the earlier models support both PSTN and VoIP.

Color screens, digital TADs, voice caller ID and SMS capabilities are other value-added features that buyers can expect in more product releases from Greater China DECT phone suppliers. Many of the current-generation models support walkie-talkie, intercom and multiparty conferencing. Larger phone book capacity and broader operating range are also emphasized in makers’ product development efforts.

Greater China’s DECT phone manufacturing industry had a lackluster performance in 2007, with shipment volumes sliding from a year before. In mainland China, erstwhile large-scale DECT phone maker TCL Communication Equipment Co. Ltd quit the line to focus on other telecom products such as fixed wireless terminals (FWTs) and fixed wireless phones (FWPs). In Taiwan, DECT phone shipment volume for the period January to October 2007 reached only 8.56 million sets, a significant drop from 13.56 million sets shipping in the same period
in 2006.

Some makers attribute the decline to the overall decrease in demand for home phones and to slowing penetration of DECT phones in new markets. Nonetheless, the development of enterprise applications for DECT together with the continuous shift from corded to cordless phones augur well for the surviving DECT phone makers, which continue to see much promise in the product line.

The region has about 40 suppliers of DECT phones, with more than half based in mainland China. Many of these makers said that DECT phones have a solid foothold in their existing markets, particularly Europe, where steady year-on-year growth is projected. Longer-range DECT 6.0 models, VoIP integration and continuous feature upgrades will continue to make DECT phones interesting for end-users in traditionally strong markets during 2008. Further, suppliers are also eyeing many emerging markets, which is why low-cost, basic models continue to occupy prominent space in most makers’ catalogs.

Taiwan DECT phone manufacturers are a mix of veteran phone manufacturers and companies from related product lines, such as security products. The island’s makers have, in recent months, shown a shift in priority from boosting production capabilities to investing in R&D. For instance, many new models from the island can already support DECT 6.0, which is slowly gaining traction. In the US market, the NPD Group reported that as of Q3 2007 DECT 6.0 devices accounted for 17.9 percent value share of the cordless category. VoIP applications, such as Skype and SIP support, are also key R&D priorities of Taiwan makers.

Mainland China’s DECT phone makers are mostly telecom and electronic product manufacturers that can easily allocate resources to DECT phone manufacturing on demand. The leading makers include Desay Electronics (Huizhou) Co. Ltd, Shenzhen Guowei Electronic Co. Ltd, BBK Communication Equipment Corp. Ltd, Xingtel Xiamen Electronics Co. Ltd and Shenzhen Gaoxinqi Technology Co. Ltd.

Hong Kong’s major DECT phone makers include VTech Communications Inc., Topcom Asia Ltd, A-Team Technology Ltd, Cheung Hung Electronics Ltd, Goldtop 2000 Ltd and Picotronics Industries Ltd. A new entrant, Cypress Electronics Ltd, joined the line in 2007.

Some of the suppliers actively develop new models for ODM and OEM clients, as well as for marketing under their own brands. Others are less active in new product development, releasing a few reference designs from time to time and focusing on OEM services. Almost all manufacturing activities take place in mainland China, in particular in Guangdong province.
Taiwan suppliers lead in DECT 6.0, VoIP integration
High-end to low-end models from mainland China
Hong Kong makers focus on midrange and entry-level units
Prices stable across region
Capacity ready for rising demand
Export-dependent industry

	The Wixphone from Taiwan’s Uwin is a DECT operator that can support up to four external lines and 16 handsets.

DECT phones for household applications account for about 60 percent of Taiwan’s DECT phone output. The rest of DECT phones produced on the island are targeted at office and enterprise VoIP applications.

DECT 6.0 product development is a high priority. Models integrating VoIP are expected to be a major trend in the next few years. Some Taiwan suppliers are incorporating Skype into their DECT phones as an initial step toward VoIP DECT phones. SIP DECT phones will likely be a second step.

About 50 percent of Kingtel Corp.’s development projects revolve around DECT 6.0. The company predicts that 70 percent of its cordless phone output this year will comprise basic DECT and DECT 6.0, up from the aggregate market share of 40 percent last year.

The company has released six DECT phone models since 2006 and is preparing to release four models this year. Kingtel’s 6412D is an expandable corded speakerphone with DECT system. The GAP-compliant model can support up to two base units and six cordless handsets per base unit. The 6011DS and 6011D6S support DECT 6.0.

Uwin Technologies Co. Ltd’s focus is on VoIP integration. The company offers a range of Skype DECT phones. It will also emphasize SIP models in coming releases.

The company’s Skyway is a USB 2.0/1.1 DECT dongle that supports Skype-to-Skype and SkypeOut. The Skyway6 edition can support an outdoor range of up to 300m. Another dongle model, the SkyDECT, supports Skype and PSTN on as many as four handsets.

Uwin is now actively promoting its Wixphone, which is a DECT operator that can support up to four external lines and 16 handsets. The Wixphone has an outdoor operating range of 300m.

	The DTM-003 1.8GHz DECT phone from Hong Kong's Picotronics integrates a digital TAD.

Mainland China makers offer a wide range of DECT phones to serve the high-end to entry-level export markets. Makers do not serve a domestic market for DECT on the mainland as the Chinese government has reserved the 1.9GHz frequency for TD-SCDMA.

Makers are increasing value added in their DECT phones. Available units now pack color screens, SMS, large-capacity phone book (90 to 200 contacts) and voice caller ID. Besides being housed in more stylish casings, these models support walkie-talkie, intercom, three-way calls, selectable wallpaper and calculator. Many units support four or more handsets, and some models have started integrating VoIP.

Low-end DECT phones from mainland China generally feature mono screens, caller ID, call waiting, 50 to 90 phone-book entries and support for up to four handsets.

Midrange DECT phones usually have 1.5in color screens, 90 to 200 phone-book entries, TADs and wallpaper options. These models support five or six handsets. Some units integrate SIM card readers and calculators.

High-end DECT phones come in many variants. Most high-end models have 1.8in or larger color screens. Polyphonic ring tones and SMS are standard.

Feature integration is influencing more the high-end DECT phones. Color screens, card readers and SMS capability will also shape trends this year.

Desay offers an integrated DECT station phone and 8in digital photo frame. Desay is also developing DECT technology to download ring tones and images from PCs. The company, which has been producing DECT phones since 2001, can offer more than 100 DECT phone industrial design (ID) options.

Gaoxinqi’s GD305 supports up to five handsets on one base unit, and four base units can be registered per handset. It features 300m outdoor range with out-of-range tone option, GAP support, call duration monitoring for external and intercom calls, types I and II caller, and call waiting. The GD305 also supports SMS, with public and private SMS storage options on each handset.

Gaoxinqi has launched six DECT phone models. The company is currently focused on DECT and combination phone development. It can release two samples a month.

BBK Communication’s DECT phone portfolio includes eight models. The company is promoting the BBK-BKD-108, which features a 1.72in 65,000-color CSTN LCD, call waiting and voice caller ID on the handset. Each BBK-BKD-108 handset can register up to two base units, while each base unit can register four handsets.

	The SHWP-2008 from mainland China's Desay supports 1.8GHz DECT and SIP.

Many models with integrated VoIP function were released in 2007, but adoption has remained small. Some suppliers have also announced DECT 6.0 versions, but few promoted them actively. Some suppliers are expected to market these models more aggressively this year. Most companies, however, will remain focused on the entry-level and midrange segments.

Cypress Electronics offers six models of 1.8GHz DECT phones. These serve as reference designs that buyers may use as starting point when deciding the specifications that they want. The company can modify existing housings and integrate VoIP function, intercom and other functions as desired by the customer. In some of its projects under development, the company is applying DECT technology in certain security applications such as video doorphones, intercoms and baby monitors.

Picotronics provides seven reference designs of DECT phones. Its two latest models integrate VoIP function. Its Skype DECT phone supports two-line PSTN and Skype connection. It enables conference call between PSTN and Skype, and Skype functions such as SkypeOut and contact list display.

The NDS-003 from Picotronics is a dual landline and VoIP SIP phone. Aside from functioning as a regular DECT phone, it can be used to subscribe to a VoIP service provider and place VoIP calls without using a computer. It records three SIP numbers and includes 140-entry phone book, 64 incoming call record, 64 outgoing call memory and caller ID. The device also supports three-party conference, call transfer, handsfree and multihandset operation.

Picotronics’ DCM-003 is a full-featured DECT phone with built-in digital TAD. It features a 12-digit dot-matrix LCD, 30-record caller ID, light keypad, three polyphonic ringers, multihandset support and preview dial. It supports paging, call transfer, recall (handset locator), intercom and speakerphone, as well as low-battery warning, out-of-range warning, and volume control for the speaker and ringer.

The entry-level DECT phone from Picotronics, the DCT-001, has a 12-digit dot-matrix LCD, three ringer melodies and 30-record caller ID with date/time stamp.

Picotronics leverages its extensive OEM/ODM/EMS experience and manufacturing capability to offer basic to full-featured and VoIP-integrated DECT phones. Its expertise covers wireless communication devices, A/V appliances, security products and satellite TV receivers.

To stimulate demand growth, Goldtop continuously develops new designs and colors, and introduces new features in its DECT phones. It offers a wide selection of DECT phones with entry-level, midrange and high-end features. Among its latest releases for the high-value segment are the DC2070 and DC2080, which join earlier models DC2060 and DC2020.

Two of Goldtop’s midrange models are the DC5035V and Bravo Cordless 2. The Bravo Cordless 2 features large keys and backlit LCD, white base ringer light and speakerphone. It comes with nine handset melodies, page function on base, adjustable volume, call timer, mute and FSK/DTMF caller ID II.

The DC7010C is one of Goldtop’s high-end models. It features a color graphic screen with backlight that displays date and time settings. The base unit can support up to five handsets.

DECT phone prices in Taiwan as of H1 2008 range from $15 to $16 per unit, which is about 20 percent less than pricing in H2 2007. DECT 6.0 units are priced from $20 to $22 per unit as of H1 2008. The additional costs in DECT 6.0 units include certification and product development.

Mainland China DECT phone makers expect their prices to be stable in H1 2008. Low-end models are quoted from $14 to $16 per unit. Midrange models are priced from $20 to $35 per unit. High-end products range from $35 to $70 each.

In Hong Kong, despite higher production costs, DECT phone prices are not expected to go up in 2008. A slight reduction of less than $1 is even expected for entry-level models, as IC vendors take advantage of new, more efficient production technologies.

Cypress Electronics’ basic 1.8GHz DECT phones such as the 6306 are priced at $13 to $14 per unit. Models with color displays such as the 6303 are quoted at $16 to $18 each. Integrating SMS and TAD raises prices to about $23 per unit. The company requires a 5,000-unit minimum order.

A full-featured DECT phone with a built-in digital TAD from Picotronics is quoted at about $22. Picotronics accepts a minimum order of 5,000 units.

Goldtop’s entry-level DECT phones are priced at less than $20 each. Midrange models are from $20 to $27, and high-end models start at $28 each.

Taiwan-based Kingtel conducts R&D in Taipei, outsources mold making to Taiwan and mainland China subcontractors, and conducts most production processes in its plant in Huizhou, Guangdong. Kingtel’s in-house production equipment includes plastic injection machines, silkscreen printing machines and SMT lines.

Kingtel produced 800,000 DECT phones in 2006 and 1.12 million DECT phones in 2007. The company expects that its output of DECT phones will continue increasing in 2008.

Uwin’s initial DECT-related efforts were focused on security products. In 2001, the company began to develop DECT phones. Uwin’s in-house R&D unit and assembly lines are located in Hsinchu, Taiwan. The company’s 2008 monthly production capacity for DECT operators is about 50,000 sets.

In mainland China, production of DECT phones is mainly centered in Guangdong province. Guangdong’s cities of Shenzhen and Dongguan are the largest production hubs, followed by Guangzhou, Zhuhai and Zhongshan. Xiamen city in Fujian province is another sourcing hub for DECT phones.

Desay produces 400,000 DECT phones per month, against a monthly manufacturing capacity of 700,000 units. Desay conducts all manufacturing processes in-house except for plastic injection molding. Desay buys chipset from National Semiconductor Corp. and DSPG Telecom. The company said that the materials and components account for 85 percent of production cost,
and that supply is very sufficient.

Gaoxingi’s average monthly output of DECT phones is 50,000 units. Its monthly production capacity is 70,000 units. Gaoxinqi is capable of conducting all production processes in-house. The company uses ICs from mainland China suppliers and makes the RF modules in-house. Hardware accounts for about 80 percent of Gaoxinqi’s total manufacturing cost.

BBK Communication makes 12,000 DECT phone units a month against a monthly capacity of 20,000 units. The company can conduct all manufacturing processes in-house. It uses ICs (RF modules and baseband chipsets) from National Semiconductor and Sitel

BBK Communication’s factory is equipped for vertical production. The monthly output for DECT phone is 12,000 units, based on a capacity of 20,000 units per month. The company uses National Semiconductor and Sitel ICs (RF modules and baseband chipsets), which account for 30 percent of the total manufacturing cost.

Xingtel Xiamen produces about 300,000 DECT phone units monthly. It has a 40,000sqm factory that is ISO 9001:2000 registered and implements QC08000 HSF Control System. Xingtel Xiamen’s ERP has been up and running since 2005. The manufacturer has a daily capacity of 20,000 various telecom products.

Hong Kong-based Cypress Electronics has an old factory in Dongguan, and a new one in Heyuan, also in Guangdong. The new facility started operations in the summer of 2007 and is more than four times bigger than the Dongguan factory. It has two production lines for DECT phones, with a combined production capacity of 100,000 units per month.

However, Cypress Electronics can actually handle much larger orders courtesy of its more than 6,000 production staff and more than $12 million worth of production facilities. Cypress Electronics projects to produce 500,000 to 1 million DECT phones in 2008. The company was already shipping 30,000 DECT phones per month two months after the release of its reference designs. About 60 percent was shipped to telecom companies, and 40 percent went to resellers.

The company conducts design and manufacturing processes in-house, including SMT, mold and tooling fabrication, metal works, plastic injection molding and wire/harness assembly. Software design is the only
major DECT phone process that is not created by its
own engineers.

Cypress Electronics also provides customization services. Almost all of its shipments of DECT phones had customized features. For instance, units shipped to India have longer battery life. Phones shipped to Russia have enhanced caller ID features.

Picotronics has invested $40 million in its factory in Shenzhen, where it houses SMT lines, auto reflow lead-free soldering machines and ICT testers, as well as production lines for PCBA and final assembly. Its in-house EMC/LVD testing lab, which enables substantially reduced development time and costs compared with that of third-party testing, was acquired at a cost of $500,000. The company also purchased an X-ray fluorescence spectrometer to ensure that its products comply with RoHS requirements. It can produce up to 300,000 DECT phones monthly.

Hong Kong’s Goldtop is an OEM provider specializing in telecom products and consumer electronics. Established in 1987, Goldtop is capable of delivering tailor-made products from rendering, mockup and pre-engineering design stages up to mass production, QC and shipment supervision. Goldtop produced an average of 500,000 DECT phones monthly in 2007. It projects to output 6.8 million units for the whole of 2008.

In 2007, Taiwan Customs recorded 38 percent of DECT exports were shipped to North America, 37 percent to Europe, 18 percent to Asia, and the rest to other markets, including Australia and the Middle East. Taiwan suppliers generate most DECT phone sales from ODM sales.

About 80 to 85 percent of Kingtel’s DECT phones will be exported in 2008. The company mainly ships its DECT 6.0 phones to North America and DECT phones to Europe.

Uwin’s 2008 target for DECT phone sales is $7.58 million. The company generates all its DECT phone sales from ODM sales. It only shipped 20 percent of its DECT phones abroad in 2007, but plans to boost its overseas markets in 2008. Toward this end, it is developing markets in mainland China, India and some developing countries.

Mainland China makers’ main export markets for DECT phones are Europe and North America. DECT has high penetration levels in Germany, Britain, Hungary, France, Poland and Turkey. Holland and Russia are Europe’s fast-growing DECT markets. Other export destinations include Egypt, South Africa, Australia, Indonesia and Colombia.

France, Germany and Italy account for 80 percent of Gaoxinqi’s DECT phone exports. The rest of the company’s shipments go to other countries in Europe. About 90 percent of the company’s export sales are generated from OEM and ODM business. Gaoxinqi also sells its DECT products under its own brand, Gaoxinqi, in Vietnam and South Africa.

BBK Communication’s DECT phone exports mainly ship to Russia, France, Italy and Spain. The company is targeting North America. BBK Communication’s Russia business is mostly with an OEM client. In the Middle East, the company has established a market for its own-branded BBK DECT phones. DECT phones and 2.4GHz phones currently account for 15 percent of the company’s sales.

Xingtel Xiamen’s clientele includes Siemens, French Telecom, British Telecom, Telefonica, NEC, Verizon, Uniden, Audioline, Telia, Korea Telecom and Hyundai. Aside from color DECT phones and VoIP devices, Xingtel Xiamen manufactures 5.8GHz, 2.7GHz, Bluetooth and 900MHz devices.

Hong Kong’s Cypress Electronics targets overseas markets exclusively, mainly OEM clients in Europe, the US and some parts of Asia such as India. Cypress Electronics has a long background supplying electronic components—both in-house labels and Japan-made brands—to DECT phone manufacturers. It is a subsidiary of a major OEM, ODM and EMS provider.

DECT phones contribute a small portion of Picotronics total revenue, the bulk of which comes from EMS. The company, however, is intent on continuing DECT phone development and steadily expand its product range.

Goldtop believes that the US dollar’s weakening vis-à-vis the yuan appreciation will not adversely impact its export performance in 2008.

It projects even stronger DECT phone shipments as it explores new markets in Russia and India, and strengthens its customer base in the US and South America.