[FiiO]

(7) USB audio Adapter Designed for Mobile Phones (USB dongle)

When it comes to USB dongles, FIIO can be considered an industry pioneer, having introduced the first dongle DAC, the i1, compatible with the iPod and iPhone several years ago. However, FIIO could also be considered one of the latest manufacturers to introduce USB dongles, as major brands were flourishing, and we only entered the market in October 2021 with our first dongle, the KA3.

Certainly, once we set our sights on the market and went full throttle, the results were quite impressive. Subsequently, we launched the KA2, KA1, KA5, KA13, K17, as well as the latest-released KA11.

Except for the KA5, FIIO is on the verge of completing a comprehensive upgrade from the first to the second generation. Surprisingly, due to the strong performance of the KA1 and KA3, we even announced the replacement or already launched the replacement model some time ago, but the KA1 and KA3 continue to sell remarkably well.

This situation is somewhat reminiscent of the early automotive market when Santana cars from five generations were selling simultaneously.

In 2024, in addition to the recently released KA17 and the KA11, our new product plans include:

1. A high-cost-performance KA10 for entry-level users
The KA10 is mainly positioned in the market near 15 USD. Due to cost constraints, there are no special highlights in terms of functionality and performance. Its main features are compactness and convenience, with FIIO's recognized quality control and customer service. The KA10 is expected to be released in the summer.

2. KA15 (successor to KA5)
The KA15 is currently under development, but the final release is still a while away, likely around August or September. The main changes include adding a desktop mode and more sound adjustment features.

Other features and designs will retain some characteristics of the KA5, such as the display screen. The exterior design is also interesting, breaking away from FIIO's traditional design and adopting a more intriguing idea. Details are currently kept confidential to avoid others preempting a similar concept design.

With this lineup, when the peak season arrives in 2024, FIIO's mobile USB dongle product series will range from low-to-high-end: KA10, KA11, KA13, KA15, and KA17.

We strive to create exquisite, innovative, and outstanding products to provide users with a rich selection.

As for inquiries about whether there will be a more high-end product than the KA17, it depends on the sales performance of the KA17. If it exceeds our expectations, it indicates a market for more expensive USB dongles, and we will have the cost space to create even better products. If sales meet expectations, there is no need to complicate matters further.

Therefore, scientific decisions will ultimately rely on market feedback and consumer responses.

 

[Insider K]

2. KA15 (successor to KA5)
The KA15 is currently under development, but the final release is still a while away, likely around August or September. The main changes include adding a desktop mode and more sound adjustment features.

Sounds very intriguing indeed.

 

[Zachik]

@FiiO what about the original M11 upgrade to Android 12 OS?
I hope this is planned as well. Thanks.

 

[PitSteelers69]

@FiiO, I have an M11 Plus Ltd. Will it get the Android 12 upgrade as well?

 

[jeromeoflaherty]

@FiiO - Well done - I find these new product schedule messages both informative, honest and refreshing for a company to share.

 

[FiiO]

@FiiO what about the original M11 upgrade to Android 12 OS?
I hope this is planned as well. Thanks.

Dear friend,

Sorry no, the M11 is using 7872 chip so it could not be updated to Android 12 because of platform limitation.

Best regards

@FiiO, I have an M11 Plus Ltd. Will it get the Android 12 upgrade as well?

Dear friend,

Yes when Android 12 is stable enough.

Best regards

 

[FiiO]

(8) TWS Products

When it comes to the most popular audio products in recent years, TWS earbuds undoubtedly top the list. It can be said that the profit from just the Apple AirPods may surpass the combined profits of all other audio products, even exceeding some smartphone brand giants.

Therefore, TWS earbuds can be regarded as revolutionary products, much like smartphones.

As an audio professional, FIIO has made significant efforts in this field, with products like TWS earbuds EW1, FW3, FW5, air conduction TWS earbuds JW1, and TWS ear hooks UTWS1, UTWS3, and UTWS5.

Until now, our most successful product has been the UTWS5. The core reason is that it provides audiophiles with a solution that offers excellent sound quality, a good user experience, and an affordable price. Users can turn their favorite earphones into high-quality TWS earbuds.

Other products have not achieved the expected success for two main reasons. First, the primary target users are ordinary consumers, and we have to compete with brands like Apple, Huawei, and Walkman, where the brand differences are significant. Second, the core function of TWS earbuds is not sound quality but active noise cancellation (ANC). To prioritize sound quality, FIIO chose to forgo the ANC function.

Here we would like to briefly explain the principle of active noise cancellation and why it's challenging to balance it with sound quality.

The principle of active noise cancellation is relatively simple. We define the music signal as M and the external noise heard by the human ear as N. So, the sound heard by the person is M + N. Active noise cancellation uses microphones to pick up external noise N, converts it into -N through a circuit, and adds it back. Now, the sound heard by the person becomes M + N + (-N). So the N and -N are canceled out, and only M remains. This is the principle of active noise cancellation.

Why is it challenging to balance sound quality and active noise cancellation?

1. The current technology of active noise cancellation makes it difficult for the collected external noise signal (N) to be exactly the same as the noise heard by the human ear. This leads to a difference between N and (-N) in amplitude, frequency, and phase. So, N + (-N) ≠ 0, and there is still a difference, which we can call n. Therefore, when noise-canceling headphones are working, users will still hear some noise, which will damage the sound quality.

2. When the active noise cancellation function of noise-canceling earphones is turned on and off, the frequency response curve of the earphones changes. If the tuning is done when the noise cancellation is on, the curve will not be ideal when the noise cancellation is off, and vice versa. Although compensation and correction can be done using DSP, the processing power of the TWS earphones' SoC chip is limited due to size and power consumption. Therefore, achieving excellent compensation is challenging.

This is why none of FIIO's TWS earbuds come with active noise cancellation. Of course, in hindsight, it seems that our considerations may have been excessive. Most TWS earbud users generally assume that active noise cancellation is always on. So, as long as the sound quality is good when noise cancellation is active, it is sufficient.

Another issue that was frequently asked about is why FIIO's TWS ear hooks cannot have active noise cancellation.

This is because the principle of active noise cancellation dictates that the microphones picking up external noise must be close to the eardrum to accurately capture the noise signal. For example, most mainstream noise-canceling headphones have two noise-pickup microphones, one on the outer shell and the other on the inner side of the earphone case. This is done to achieve effective noise cancellation.

For TWS ear hooks, if active noise cancellation is implemented, the noise pickup microphone can only be placed on the ear hook, resulting in less accurate noise capture. Achieving effective active noise cancellation becomes challenging.

If implemented forcefully, users may complain that our active noise cancellation is not as good as TWS earbuds at a lower price, leading to an awkward situation. After all, except for a few industry experts, it is challenging for most people to understand the impact of the noise pickup microphone's position on the effectiveness of active noise cancellation.

FIIO's TWS earbud plans for 2024 are as follows:

1. The FW3/FW5 will be produced as usual, even though the output is not large (there are too few users buying HiFi TWS earbuds). We will stop production when sales margins are not sufficient to sustain production.

By the way, many market surveys claim that sound quality is the most important factor in purchasing TWS earbuds. In fact, it's misleading. Consumers are always ambivalent when purchasing.

2. The UTWS5 has been out of production for several months. This product is quite competitive with no rivals in the market. The reason we stopped production is that we couldn't solve the corrosion problem with the ear hook charging contacts. We have tried many methods internally but couldn't resolve them.

Currently, we are trying to completely remove the metal contacts and change the ear hook charging to wireless charging. Since such a small-area wireless charging technology on the market is immature and rare, there are many technical challenges that we need to overcome and solve by ourselves. There is no ready-made solution available.

Therefore, although we plan to launch the 2024 version of UTWS5 in the summer, we cannot guarantee the timing. We hope you can understand.

 

[frkasper]

Currently, we are trying to completely remove the metal contacts and change the ear hook charging to wireless charging.

A new UTWS5 with wireless ear hook charging and a battery level indicator in the case would be killa.

 

[RPGWiZaRD]

What I'd like to see from FiiO is a Bluetooth transmitter with built-in EQ capabilities, it's a shame BTA30 doesn't support EQ and BR13 is reciever-only. Would love to have the capability to EQ bluetooth headphones as well.

 

[KaiFi]

Closed-back version of the FT5 coming? One can hope.

 

[EniGmA1987]

2. K11 R2R special edition
In the past two years, due to chip supply issues and technical bottlenecks, there have been very few choices for audio DACs. In this context, various brands have introduced their R2R products.

Adopting R2R technology allows us to break free from the restrictions of ESS, AKM, and other chip manufacturers. We can use general chips like FPGA. Additionally, the R2R D/A conversion mode, compared to the current commercial DAC's Δ - Σ conversion method, is considered to be closer to the sound of analog audio. Therefore, despite some key indicators such as signal-to-noise ratio, distortion, dynamics, and sampling rate support being somewhat inferior, and despite higher power consumption, larger size, and higher costs, many audiophiles would still choose products with R2R technology for their unique sound.

Simply put, R2R has good taste, while Δ - Σ has high quality. (Note: There are R2R with very high indicators, yet at an extremely high price and with large circuit size. We personally think that if R2R indicators are pronounced too high, its unique taste might not be so attractive.)

Therefore, the K11 R2R version will be FIIO's first product to use R2R technology. As the first product, there may be some aspects that are not so mature and complete. So, we are testing with the technology in the K11 first. We will gradually iterate and evolve based on feedback from users. Depending on feedback and demand from audiophiles, we will decide whether to develop it as a personalized product in small quantities or apply it as a core technology to more of our products in the future.

The K11 R2R version is expected to be available for sale in the middle of 2024.

You should use all SMD mount thin film resistors with 0.1% tolerance and 5 PPM/C temperature coefficient (or better). Too many R2R designs and especially cheap ones use sucky resistors that compromise the sound quality too much. You will greatly improve distortion and accuracy with the use of good thin film resistors. When bought in bulk these are usually down at $0.25 or less each. So even in a fully balanced DAC that used 96 of them the cost of such high quality resistors only costs $24 or less. I really don't think the end users would mind adding some extra to the cost to get top performing resistors rather than have inferior performance.

Currently, we are trying to completely remove the metal contacts and change the ear hook charging to wireless charging.

This is an excellent solution!

The UTWS5 has been out of production for several months. This product is quite competitive with no rivals in the market.

However the Ifi Go Pod does actually compete with the UTSW5 and outclasses you in sound quality. But the user experience isnt as good because the controls suck, and to me the part that hooks around the hear is too small and gets uncomfortable after a while. Sound quality wise and volume wise though the UTWS5 is now beaten.

 

[PitSteelers69]

You should use all SMD mount thin film resistors with 0.1% tolerance and 5 PPM/C temperature coefficient. Too many R2R designs and especially cheap ones use sucky resistors that compromise the sound quality too much..

I think I recall reading somewhere that Denafrips and Musician Audio use resistors with a tolerance of. 005%.

 

[EniGmA1987]

I think I recall reading somewhere that Denafrips and Musician Audio use resistors with a tolerance of. 005%.

I mean ya if they can then obviously use something even better. But they are trying to make an entry level one or at least a reasonably priced one. 0.005% resistors cost 10-20x as much as the ones I listed. Id love to have them, but you simply cant at an entry level price point. My point was you can use resistors that are in the top grade level and not inflate the product price very much now days, so to save $15 in materials to use 2-5% tolerance ones with way worse temp coefficient and end up having significant variation between ladder sections and channels and the higher distortion is a bad idea. This is an area most entry level R2R's bring about their failure.

5% and 200 ppm = $0.01-0.1 each
0.1% and 5 ppm = $0.25 each
0.05% and 2 ppm = $3 each
0.005% and 0.x ppm = $10 each

FiiO wants to make an entry level and get feedback on it and gauge interest according to their post. So not cheaping out to save a small bit of money that would easily be passed on to the end user for a significantly better performing product is my feedback for them on its design. You can easily add $20 to the product price and use the high grade thin film resistors in the marketing material and no one actually in the market for an R2R would ever complain about it.

 

[FiiO]

(9) Over-Ear Headphones

Our previous understanding of over-ear headphones was that they had limited use scenarios, and the market was much smaller compared to in-ear monitors. However, since the success of FIIO's desktop DAC and headphone amplifiers like the K5 Pro and K9 Pro, we decided to venture into over-ear headphones.

The logic behind this decision is straightforward. Since we've sold so many desktop DAC/Amps, the vast majority of users should be using them to drive over-ear headphones. This also proves that the market for over-ear headphones is positive.

Another reason is that the entry for making in-ear monitors now is too low. One or two individuals can find a ready-made solution (some even directly purchase ready-made solutions on common platforms) and use 3D printing technology or metal CNC processing, without having to spend tens of thousands to create molds. This has led to a proliferation of new brands producing in-ear monitors. Even selling a few hundred pairs can be profitable after some marketing.

In contrast, over-ear headphones are structurally complex, challenging to tune, and lack a rich supply chain. More importantly, over-ear headphones cannot be made using 3D printing technology, and using metal CNC would make them very heavy. Therefore, significant investment is required to create multiple molds. This raises the entry barrier for over-ear headphones, making it a high-risk endeavor. If the project fails, the cost of failure is high.

Do you find the current market situation similar to what we've described?

After the birth of the FT3/FT5, we can say that we achieved initial success. Sales exceeded our expectations. Although FIIO's over-ear headphones may not yet surpass traditional major brands like Sennheiser, Beyerdynamic, and Audio-Technica in some countries, they are leading among Chinese brands. Achieving such results shortly after entering the market is not easy for us.

According to our distributors, FIIO's build quality, reliability, cost-effectiveness, and sound quality are all excellent. Distributors are happy to sell our products, and consumers are happy to use them.

Therefore, in 2024, we will continue to increase investment and develop new products, including:

1. FIIO entry-level over-ear headphones FT1
Considering the lower positioning of the FT1, it will have more use cases, such as students listening to music in the library or office workers in their offices. Based on suggestions from many old users, unlike the FT3 and FT5, the FT1 will be a closed-back over-ear headphone to avoid disturbing others while listening to music.

Additionally, the FT1 will use solid wood ear cups. This not only satisfies many people's love for wood but also serves as a tuning element. Compared to metal, wood has better resonance absorption effects, while also enhancing sound performance.

The FT1 is expected to be launched around July.

2. FIIO flagship over-ear headphones FT7
Currently, FIIO's highest-positioned over-ear headphones are the FT5, priced at 449.99 USD. It is relatively affordable among HiFi over-ear headphones and has excellent sales. However, due to the complex process of the planar diaphragm unit, we still cannot guarantee a steady supply.

Since the FT5 sells well, we have confidence in moving upward to create over-ear headphones with higher sound quality, design, and other aspects to meet users' demands.

For reasons of commercial confidentiality, we cannot reveal too many details at the moment. However, I can tell you that we have invested a lot of effort and money in innovating the unit this time, addressing issues such as the weight, efficiency, and small amplitude of planar over-ear headphones.

In summary, if we do it, we will prioritize the innovation problem. We hope to bring everyone an unprecedented new experience and sound quality.

The FT7 is expected to be launched in the fall.

Therefore, in 2024, FIIO's product line of over-ear headphones will consist of JT1, FT1, FT3, FT5, and FT7, covering a price range from 45 to 1,000 USD.

 

[XERO1]

I thought the FT5 sounded pretty good for a first attempt at making an over-ear planar headphone, so I'm really curious to see what FiiO can bring to the table with a more ambitious high-end design!