The hot tech markets in China are portable audio and video players, along with high-definition DVD players and TVs... , according to ABI Research, which calls the move away from notebooks a "cultural revolution." While high-end TVs are gradually replacing CRT TVs in China and will do so at an increasing pace, 2004 was a disastrous year for domestic DVD player makers squeezed between high patent fees and falling prices, the firm reported today.

Three high definition disc standards surfaced in 2004: EVD, HVD and HDV, and in February, EVD was authorized as the recommended national standard for high definition disc.

But according to ABI Research, EVD, HVD and HDV player makers face two big problems: first, they have to produce DVD-compatible players; and second, there is a severe shortage of movie content in domestic high-definition formats. While that situation lasts, soaring HD-DVD player sales will not improve the outlook for the domestic disc standard, the firm said.

Meanwhile, the MP3 player is replacing the traditional CD player as the mainstream audio device. Flash memory models far outnumber hard disk-based players; color screen MP3 players are appearing, but due to their high price and small memory, ABI Research does not expect them to sell very well.