Video-capable, dual-mode units in the pipeline

Taiwan makers abandon production of standalone VoIP phones and focus on R&D of wireless units. Supply for gifts, premiums segments set to rise

The boom in broadband communication served as a catalyst for VoIP development. With this, computer peripheral makers and telecom product suppliers are vying for a coveted spot in the VoIP phone market by releasing units integrated with various features such as wireless capability, videoconferencing function, support for multiple services and software, and dual-mode function.

Data from mainland China's iResearch forecasts that the worldwide VoIP device market will reach $20 billion by 2008, noting that the surge in growth took place in 2005 and 2006. During the past three years, USB VoIP phones, especially Skype phones, posted significant growth worldwide.

After several years of product and manufacturing development, mainland China has become one of the world's main VoIP phone production centers. More new entrants have joined in the fray during the past two years, and the supplier base has ballooned to about 200 active makers of USB VoIP phones. About 80 percent of the mainland makers are located in Guangdong province, while the rest are based in Fujian province and the Yangtze Delta area. Shenzhen is the most important sourcing hub in Guangdong, followed by Dongguan, Guangzhou and Foshan. It is estimated that mainland China shipped more than 10 million USB VoIP phones in 2006 and this is expected to rise by 20 percent in 2007.

VoIP products are promising in Taiwan, except for USB phones, which are considered low-end products in the VoIP phone market. Computer peripheral makers in Taiwan are planning to suspend the production of USB phones, while telecom product makers are focused on dual-mode and wireless VoIP phones. Wireless VoIP phones are still considered high-end products.

Prices of VoIP phones are expected to steadily decline, but for USB phones, prices are likely to remain stable as they are already close to actual production costs. USB phones are priced at as low as $8 each and target gifts and premiums markets.

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