| Question: | What factors have led to the increasing need for OEM system manufacturers to provide card readers? |
| Answer: | The ability to transfer data between PCs and consumer electronic devices using high-capacity, high-speed storage media is a growing necessity for consumers in the digital age.
In the past, the floppy disk drive was the main peripheral used to transfer data from PC to PC. Today a plethora of memory standards offer consumers durable solutions to bring a new level of high quality digital playback and capture, enabling users to view, listen to, and enjoy incredibly rich entertainment.
The size limitation of the 1.44MB floppy disk was particularly apparent as an outdated media when digital camera file sizes grew beyond 3 Mega pixels. Current flash memory cards are available with up to 8 Gigabyte capacities, with 4 Gigabytes being predicted as the standard in the near future.
Customer recognition that such cards can truly be used as a floppy replacement to exchange data files between devices has resulted in the explosion of devices that use the different memory cards. The overall consumer market is rapidly utilizing digital media cards for a host of applications, far beyond the original digital camera application. Today such media is used in cameras, MP3 music players, camcorders, PDA's, TV sets, consumer PC's, media players, GPS systems and a host of other peripherals.
Recent announcements for applications include cellular phones and combo smart phone/cameras. Digital cameras are fast replacing the typical film camera in the consumer market, with growth of this single application expected to double in 2004 as compared to all earlier years combined.
Content distribution services, providing music, video and other types of information are poised for rapid growth. In turn, we will see increasing need for consumers to use flash memory cards. OEM system manufacturers need to plan for this growing trend and include card readers in their devices to enable consumers to transfer music, movies and photos from one device to another to keep up with this leap in technology. |
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| Question: | What are the main memory card formats available in the market today? |
| Answer: | The current standard card types in the market include:
| •CF I | http://www.compactflash.org |
| • CF II | http://www.compactflash.org |
| • IBM Microdrive | http://www.hitachigst.com |
| • Smart Media Card (SMC) | http://www.ssfdc.or.jp/english/ |
| • Secure Digital (SD) | http://www.sda.org |
| • Multimedia Card (MMC) | http://www.mmca.org |
| • Memory Stick™ | http://www.memorystick.org |
| • Memory Stick Duo™ | http://www.memorystick.org |
| • XD-Picture Card ™ | http://www.xd-picture.com |
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| Question: | What challenges do OEM system manufacturers face when designing hardware that supports the different memory cards? |
| Answer: | OEM device manufacturers face a number of challenges when designing hardware to meet the diverse needs of the memory card market. Firstly, hardware must be compatible with the current media card specification. Secondly, multi card functionality is critical to enable the easy removal, and insertion of various media. Thirdly, the challenge is to provide all this functionality by cost effective means while enhancing product features and creating greater product differentiation.
To date a single, universal standard for memory cards has not been established. In its absence, a plethora of devices are being offered with different card slots, each slot with a unique form factor, physical size and interconnect design. Despite the fact that each standard has achieved a clearly defined specification, careful consideration of the application criteria and card types is critical with such a wide variety of media. As the largest multi- platform application, digital media connects the PC and consumer products market, generating cross platform support requirements for digital media and readers. |
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| Question: | What benefits do card readers provide to OEM system manufacturers and consumers? |
| Answer: | Benefits to consumers: Multi slot functionality allows the user to transfer files between the various media types allowing the reader to act as a universal storage peripheral and offer cross platform application storage. In addition, the reader can be utilized as a temporary removable storage media for the PC.
The following user scenario demonstrates how devices with built-in card readers enable peer-to-peer transfer of data with portable consumer electronic devices.
Using a multi card reader, a consumer can transfer photos from a digital camera using a compact flash card to a computer where the photos can then be emailed. Using the SD slot on the card reader, the photos can be copied to a SD card that can be inserted into a PDA for on-the-go viewing of the photos.
Integrated readers simplify the media file transfer operation and deliver noticeable end user speed improvements. The original USB cable download solution used by digital cameras transferred data at slow speeds through the card interface, the camera controller, and then through a USB IO serial controller, a download cable and then into the PC. By avoiding the slower camera and application controller, the card reader links a more direct path to the PC IO providing significant speed improvement.
Benefits to OEM Manufacturers: The multi media card reader is the key piece of hardware providing OEM manufacturers with a solution that supports all types of portable memory formats.
Floppy disk drives (FDD) were originally thought to be eliminated, but are now expected to be replaced by media readers. Due to their limited 640MB memory capacity and moving parts, even CDs are falling short of the increased memory requirements of consumers. In this respect, the multi card reader offers OEM manufacturers a viable replacement for the CD disk drive.
With the convergence of home computing and entertainment, the card reader is enabling OEM system manufacturers to champion a range of competing electronic devices as the hub of the digital lifestyle. One example is the media center PC that is striving to become the “uber device” and central facet of the digital lifestyle where the end user can organize and assimilate key information all in one system. |
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| Question: | What type of devices are best suited for the integration of card readers? |
| Answer: | Card readers are ideal for integration in to 'host style' products that act as a processing center for the exchange and transfer of movies, music, photos, and PC data files. Some examples include:
- Game consoles
- PCs, desknotes and notebooks
- Photograph printing kiosk stations
- Printers
- Digital video recorders
- TV sets
- Audio components, such as stereo recorders and receivers
- CD and DVD multimedia players
- GPS systems which offer regional and localized detail maps.
- Portable music and video players for MPEG Video
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| Question: | What should OEM device manufacturers look for in a card reader? |
| Answer: | When defining critical criteria for building a card reader, it is important that OEM system and device manufacturers look at the following considerations to ensure the reader delivers the optimum speed and cost efficiency.
- Proven reputable supplier
- Icon driver compatibility
- USB 1.1 and 2.0 options
- Memory card compatibility and proven field reliability
- Chip supplier partnership and technology ties
- Certification and compatibility
- Cost
- Customization
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| Question: | Why is it important to partner with a proven reputable reader supplier? |
| Answer: | Partnering with a leading market supplier is critical to avail of a proven track record in design and manufacturing expertise. It is important to choose a vendor that can provide low cost manufacturing in addition to the benefits of local engineering support. A company that is in high volume production is in a better position to offer a competitive price. Cost considerations include the flexibility to keep up current with technology, offer intelligent integration into system functions, and compatibility with the largest range of media cards and brands. Today, one of the most critical cost considerations relating to new peripherals is plug & play usability, ease of use for the end user, and minimal customer support issues. Compatibility, reliability and quality of design are key elements of a suppliers proven reputation. |
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| Question: | How important is icon driver compatibility? |
| Answer: | It is important that the icon software is compatible with all operating systems on the market to avoid the costs associated with the installation process. The installation may generate a call to the device or computer manufacturers technical support services. The result is a less than satisfactory user experience and the cost of the technical support call. These costs can be the largest revenue drainer on any product manufacturer. Computer industry analysis estimates each phone call to technical support costs a minimum of $55 per call. This is just to |
| Answer: | the phone!
Taking into account that most users are new to the digital camera or digital media experience, USB icon software is key to creating a comfortable and intuitive user experience. Icon software needs to be consistent with the overall design of the OS, identify the type of media being used, where the user is copying, and provide other types of user feedback. An additional benefit of icon software to OEM manufacturers is the minimization of technical support calls which reduce the overall cost of ownership. |
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| Question: | How important is USB 1.1 versus USB 2.0? |
| Answer: | Consider the pros and cons of using USB 1.1 and USB 2.0 in terms of speed and cost.
Speed: The fastest and latest revision of any specification is normally considered necessary to compete on the retail shelf. This is commonly referred to as the spec game where customers compare specs, and purchase on the basis of maximum specification comparative to other competing readers in the same shelf space. This is particularly true for external peripherals that are not part of the overall computer system. While the speed benefits of USB 2.0 are clear, OEM system manufacturers that use internal readers may benefit from USB 1.1 readers as offering the best value for money.
The average speed difference between USB 1.1 and 2.0 for normal media cards is 15-20% for write functions, and can be up to 100% on read functions. Some accelerated write media cards offer better file transfer speeds but nowhere near the 40 times faster speed that USB 2.0 offers over the typical USB 1.1 bus speed. For internal readers, customers are less inclined to benchmark or realize minor speed differences when moving data from their media card to the CPU system. Here convenience and compatibility are the main criteria and focus.
Internal readers are typically an added feature and cost, and often appear as an additional peripheral to basic PC configurations. Typically an OEM system builder is concerned with value, cost, performance and quality. As a result, most PC OEMs will focus on the stable performance and compatibility of USB 1.1 version readers.
Typically external readers focus on the added speed performance of the USB 2.0 version because the reader is a stand alone peripheral, and it makes sense to pay extra to get improved performance. Internal system readers are not understood well enough to have speed considerations, but are more focused on integration within the overall systemand this feature is the main value to the user. As an integrated solution, the primary measurement of value is the mechanical and functional integration of the USB 1.1 reader.
Cost of USB 1.1 versus USB 2.0: USB 2.0 adds approx USD$0.80-$1.00 to the lowest cost of a USB 1.1 reader in terms of
- PCB costs: USB 1.1 can use a lower cost two layer PCB, whereas USB 2.0 high speed typically requires a four layer PCB.
- Reader chip costs: Typical 1.1 chips cost under $1 compared to USB 2.0 chips which cost $1.25 - $1.70. USB 2.0 experiences more obstacles in terms of speed and timing compliance.
- Additional Manufacturing BOM: The faster speed USB 2.0 interface requires a few extra components, and has much higher clock speeds. Higher speed wafer technology requires additional components on the PCB BOM to pass EMI/ESD compliance requirements.
This table summarizes the differences in speed and cost between USB 1.1 and USB 2.0 readers.
| USB Version | USB 1.1 | USB 2.0 |
| Transfer Speed (Read/Write) | 900-1Kbytes/sec | 900-1.3Kbytes / 1.5-5K bytes/sec |
| OEM Typical Reader Cost | $5 - $7 | $6 - $8 |
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| Question: | How important is memory card compatibility? |
| Answer: | Due to the wide range of products that have an installed base, as well as the expansion of compatible products, ideally card readers need to cover the widest spectrum of digital media cards as possible, not limiting focus on only the most popular styles.
It is important to verify that the reader complies with the most current memory card specifications and standards
- Compact Flash type I/II Version 1.4
- IBM Micro Drive Release 7.0
- Smart Media (SM) Version 1.10
- Multi Media Card (MMC) Specification 2.2
- Secure Digital (SD) Specification 1.0
- Memory Stick (MS) version 1.3
- Memory Stick ROM format (MS) version 1.0
- Memory Stick Pro (MS-PRO) version 1.0
Compatibility with the various memory card standards and specifications is a critical focus to ensure cross platform and application support. Reader compatibility with memory cards is of immense importance in a PC system solution where a $6 reader can easily create a $800 system glitch or a $50 technical support call. The importance of memory card compatibility cannot be overemphasized for readers compared to other peripheral products which do not have to comply with diverse standards, brands, variance in flash memory quality grades, and timing compliance.
One additional format to consider is xD-Picture Card from Fuji/Olympus. Due to licensing constraints by the owners of this format, upfront fees are required, in addition to a reader royalty cost. Details can be obtained by contacting the xD Association in Japan. Some manufacturers are electing not to add this media type function in a reader because of the added royalty costs, while others obtain a blanket license with the xD association to cover both CPU and printer applications with an overall system cost license. |
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| Question: | How important is the chip supplier?
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| Answer: | It is important to consider cost and total media card compatibility issues in relation to IC design. New integrated single chip design solutions offer tremendous overall cost savings compared to traditional multiple chip solutions. This approach allows OEM manufacturers to reduce the overall manufacturing BOM and assembly costs, in addition to reducing the size and space of the circuitry and improve the reliability of the reader. New IC solutions have integrated many of the required external components, and have maximized card compatibility data to work with virtually 99% of all brand media without issue. This is a critical issue within the diverse market, as a large variation of NAND Flash memory product compatibility is possible. |
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| Question: | What type of certification does a card reader require? |
| Answer: | The availability of test data for full EMI, ESD, CE, USB-IF and Microsoft WHQL is important to ensure compatibility with global standards and integration into systems. It is important that the card reader pass the following certifications:
- FCC EMI Class B
- CE ESD industry standards
- USB-IF certifications for 1.1 and 2.0 compliance
- WHQL testing for any Software Icon drivers for Windows
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| Question: | What are current reader pricing trends? |
| Answer: | It is important to be aware of current reader pricing trends to ensure a fair price is negotiated. In early 2003, the average cost of a reader was $8.50 per unit. Today's current price point is approx around $6 for USB 1.1. Pricing trends predict a low $5 range by late 2004, and less than $5 by early 2005 depending on options. As USB 2.0 becomes standard, it is predicted that USB 2.0 versions will reach closer price parity with USB 1.1 versions by early 2005.
It makes sense to focus on USB 1.1 in 2004, and offer a 2.0 version on premium high end PC models in 2005. This product introduction strategy will help keep OEM manufacturers slightly ahead of the curve in terms of USB technology, as most manufacturers plan to introduce USB 2.0 card readers in early 2005. Replacing the FDD, readers are predicted to become standard in most PC systems by mid 2005.
Despite offering the latest rev of the USB specification, USB 2.0 internal readers accrue additional costs that can be difficult to justify in terms of overall break down of MSRP. USB 1.1 needs to be considered for its cost savings benefits in terms of integration in to the system and pressure faced by manufacturers to source minimum cost readers to remain competitive. Trends predict that USB 1.1 will remain dominant in internal readers, while the diminishing external card reader market will remain focused on the USB 2.0 reader almost exclusively.
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| Question: | What customization options should OEM manufacturers look for? |
| Answer: | In order to offer a differentiated product, it is important to consider customization options. Customizable options can include
- A customized case size, footprint and bezel appearance. Typical size is FDD case footprint.
- Additional front panel USB ports. A growing trend among OEM system manufacturers is to add a front panel USB port to the reader with minimal manufacturing cost. (Approx $0.25-$0.30)
- IEEE 1394 Firewire front panel port available
- Audio in/out ports
- Different size. The integration of most of the electronics into a single chip solution allows the reader design to be adapted to almost any size factor.
- Customizable windows icons offer an effective means to simplify the end user experience and determine how the media is displayed and recognized within the system software.
- Device PID and PIV Strings.
- Configurable options for number of card slots including xD Picture-Card slot.
- LED color selection.
- Different card slot locations ands labeling options.
- Custom cable for motherboard connections.
- Integration with bays to support removable hard drive options
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| Question: | Why should OEMs partner with Northstar? |
| Answer: | Northstar designs and manufacturers the fastest and most competitively priced card readers on the market. Bench mark test results prove that Northstar provides the fastest read/write speed among USB readers. Powered by a single USB controller chip, OEM manufacturers reap the benefits of a low cost reader with high speed performance. Whats more, the reader is compatible with all software systems on the market today and the latest memory card specifications. True plug & play for a multitude of media card formats is also available.
Internal, external, and notebook readers are available immediately in high volume mass production and being shipped worldwide to leading box build houses and leading OEMs in the PC market space.
In addition to being the leading and largest provider of internal readers in the world, Northstar is the only reader manufacturer that is vertically integrated which means the customer gets to market faster. Its market leadership puts Northstar at the forefront of technology and compatibility for media, readers, and OEM system manufacturing.
Over the last 2 years of supplying OEM reader solutions, Northstar has encountered many design challenges and 'edge of spec cases where certain types of NAND flash memory cards can cause reader errors due to being at the edge of the specification. Northstar has done extensive corner case testing and successfully resolved all of these 'corner' cases.
As a result, Northstar readers have one of the highest compatibility ratings with the largest range of flash memory products both by brand name and type of media. Northstar has developed critically close partnerships with several leading reader IC technology companies. As the largest OEM volume manufacturer of readers, Northstar has closed the feedback loop to resolve compatibility issues, minimize field support calls, and make almost immediate IC updates to support our customer base. No other OEM reader company can make these claims, or has the level of support from the reader IC manufacturer. Northstar has been leading the industry in lowering overall manufacturing costs, while improving performance, speed and compatibility within the product line.
Northstar is committed to introducing readers that are compatible with next generation media cards, such as Mini SD, Memory Stick Dual. In fact, Northstar is working to tool the new 'mini SD' connector for use in mobile phones and intend to integrate this capability into next generation readers. In addition, Northstar offers other unique solutions with removable hard drives, front panel USB connectors as part of the customized OEM solution, and system integration.
Northstar is working directly with the different memory card associations to track specification upgrades. In particular, Northstar is partnering with Sony as they upgrade their memory card performance, new smaller footprint Memory Stick connector and specific compatibility testing for reader vendors. Having successfully completed certification for the xD socket and the chip, xD-Picture Card support is currently offered by Northstarpending royalty licensing on an individual customer basis. |
