HTiBs pick up from slump
After slowing down in 2004, production of home theater system products, including speaker systems and home-theaters-in-a-box (HTiB), began to gain momentum in Greater China in 2005. In 2007, it is estimated that the region’s output will go up to 10.8 million units from 7.5 million in 2004, based on data gathered by Global Sources in its Consumer Electronics China Industry Outlook report in 2005.
In a recent Global Sources survey of 48 companies in Greater China, more aggressive home theater system manufacturers forecast that growth in production and exports will reach up to 50 percent, exceeding the estimates of the Global Sources report.
The renewed vigor in production is encouraged by the increasing popularity of digital entertainment and digital home concepts, as well as wireless technologies such as Bluetooth. For instance, the growth of the flat-screen TV market worldwide has been pulling up sales of home theater products. The Consumer Electronics Association (CEA) specifically cites DVD, saying it “significantly raised the bar of realism by improving on many aspects of the video and sound quality and became the driver of home entertainment upgrades.”