Overview / Main Features
The Nokia N79 Eco is an environmentally conscious version of the stock N79 smartphone offered by Nokia in select global markets. Key to Nokia's ecological-friendly claims on this device is primarily in the reduction of packaging and the notable absence of a charger. Nokia also makes a £4 contribution to the World Wildlife Fund (WWF) for each N79 Eco sold.
Typical of Nokia smartphones, the dual-band UMTS/HSDPA (900/2100MHz), quad-band GSM/EDGE handset runs the latest Symbian S60 operating system which allows users to take advantage of the revamped Ovi online software suite and marketplace.
Environmentally conscious "smartphone" consumers
First released into select markets in Q2 of 2009
Pricing and Availability
Pricing - The N79 is available through various high-end boutique mobile phone e-tailors for as low as $300 (July 2009). However, if the phone is sold through a network carrier in select global markets, the cost may be significantly reduced due to service provider subsidies.
Availability - The Nokia N79 handset is currently available in global markets (with different 2 different variants 900/2100 MHz & 850/1900 MHz UMTS/HSDPA frequencies). Specifically, the Eco variant of the N79 is available in limited markets and at last check, only available in the UK.
For the purposes of this teardown analysis, we have assumed a lifetime production volume of 4.8M units.
As a reminder, teardown volume production assumptions are primarily used for our cost analysis in terms of amortized NRE and tooling costs, especially for custom components specific to the model being analyzed (mechanical components especially). Unless assumed, volumes increment by an order of magnitude. Incremental changes in volume (say 1 million vs. 2) rarely have a large net effect on our final analysis.
iSuppli's Design Forecast Tool (DFT) and Market Shares
As part of iSuppli's Design Forecast Tool (DFT), we forecast handset shipments by major design feature and manufacture, as well as the number of design starts a manufacturer will have by feature set.
iSuppli estimates unit shipments of 106 million HSDPA handsets in 2009 global market. All estimates are based on a 2 year product life span assumption with an overall global market share of 36.4% for Nokia.
Main Cost Drivers (Representing ~60% of total materials cost)
$12.32 - Texas Instruments - NMP #4377480 - DBB - Digital Baseband Processor
$10.02 - Primary Camera Module Value Line Item - 5.0MP CMOS, 1/2.5" Format, Auto Focus Lens
$8.5 - MicroSD Memory Card - 4GB, High Capacity
$7.15 - Sharp - LS024Q8UX09L - Display Module Value Line Item - 2.4" Diagonal, 16.7M Color TFT, 320 x 240 Pixels
$6.55 - Samsung Semiconductor - K5W2G1GACH-BL60 - MCP - 2Gb OneNAND Flash + 1Gb Mobile SDRAM
$5.01 - Texas Instruments - OMAP-DM500 - Multimedia Coprocessor - OMAP-DM, Integrated High-Performance ARM Microprocessor, 128Mbit Stacked mDDR, w/ ISP & Video Processor
$4.5 - Panasonic - WLAN Module - IEEE802.11b/g, Wilink 4.0, Contains Texas Instruments WL1251 Chipset
$3.85 - Ibiden - 8-Layer - FR4/RCF HDI, 3+2+3, Stacked Via, Lead-Free, Halogen-Free
$3.63 - BL-6F - Battery - Li-Ion, 3.7V, 1200mAh, 4.4Wh
$2.09 - Texas Instruments - NL5350 - GPS - Single-Chip, A-GPS, NaviLink 5.0
$2.08 - ST-Ericsson - NMP #4380206 - RF Transceiver - Quad-Band GSM/GPRS/EDGE, Tri-Band WCDMA/HSDPA 850/900/2100
Direct Materials $112.35
Total BOM Cost$116.73
What Is Not Included in our Cost Analysis
The total materials and manufacturing costs reported in this analysis reflect ONLY the direct materials cost (from component vendors and assorted EMS providers), AND manufacturing with basic test. Not included in this analysis are costs above and beyond the material manufacture of the core device itself - cost of intellectual property, royalties and licensing fees (those not already included into the per component price), software, software loading and test, shipping, logistics marketing and other channel costs including not only EMS provider and the OEM's margin, but that of other resellers. Our cost analysis is meant to focus on those costs incurred in the manufacture of the core device and exceptionally in some circumstances the packaging and literature as well.
OEM/ODM/EMS Relationships / Manufacturing
According to iSuppli's "Global OEM Manufacturing and Design Analysis - Mobile Handsets Q1 2009", Nokia conducts much of the final assembly in-house throughout their various global operations while utilizing EMS providers to source mobile handset modules and sub-assemblies. iSuppli estimates that Nokia has increase their share of manufacturing to nearly 83% of their handsets in 2008.
Nokia maintains worldwide manufacturing operations in North America (Mexico), South America (Brazil), Asia Pacific region (Korea), Greater China, India and 4 other locations in both Eastern and Western Europe. iSuppli estimates that Nokia used 6 ODMs & EMS providers in 2008 with Foxconn, Elcoteq and Jabil making up roughly 15% of Nokia's overall manufacturing capacity.
Country of Origin / Volume Assumptions
Based on markings, the unit was assembled in Hungary. Furthermore, we have assumed that custom mechanicals (plastics, metals, etc.) were sourced in lower cost regions within Eastern Europe.
Country of origin assumptions relate directly to the associated cost of manufacturing, where calculated by iSuppli. In the cases of "finished" sub-assemblies (such as the LCD), we do not calculate internal manufacturing costs, but rather assess the market price of the finished product in which case country of origin assumptions may or may not have a direct effect on pricing.
Remember also that labor rates are applied directly only to hand inserted components and systems in our bill of materials, and although regional assumptions do, these new rates do not have a direct effect on our modeled calculations of placement costs for automated SMD assembly lines. "Auto" inserted components (such as SMT components) placement costs are calculated by an iSuppli algorithm which allocates a cost per component based on the size and pincount of the device. This calculation is affected by country or region of origin as well.
Nokia handsets, as a general rule, have fewer discrete mechanical and electronic components, for the same amount of functionality than their competitors. Furthermore, Nokia have a very modular approach to designs which make them simpler to manufacture, improving production cycle times and ease of re-work. The Nokia N79 has a component count of 754 of which, 16 comprised of box contents & 185 are mechanical in nature. This device complexity is on par with other 3.5G handsets in this comparative analysis.
Component counts have a direct bearing on the overall manufacturing cycle times and costs, and also can increase or decrease overall yields and re-work. Our calculations of manufacturing costs factor counts and more qualitative complexities in the design. The cost of manufacturing is also, to some extent, decreased in this case because of assumed labor rate applied for Hungary.
Note that manual labor has a much smaller effect on auto-insertion assembly lines (for the Main PCB, for example), where manufacturing costs are much more capital equipment intensive and driven by these investment costs.
Here is a summary of the major components used in the Nokia N78 design
- Texas Instruments - NMP #4377480
- Multimedia Coprocessor - Texas Instruments - OMAP-DM500 (OMAP-DM, Integrated High-Performance ARM Microprocessor, 128Mbit Stacked mDDR, w/ ISP & Video Processor)
- CPU Interface Converter - Epson - S1D13747B00B20B (Parallel RGB / 3-Wire Serial to 8-bit i80 CPU)
- DAC - Texas Instruments - TLV320DAC33IZQCR
- I/O Expander - Toshiba Semiconductor - TC35892XBG (Low Power, I2C Interface, 2x2 ~ 8x12 Keys, Up to 24 GPIOs, w/ PWM Timers)
- USB On-the-Go Transceiver - ST-Ericsson - ISP1504A1ET (USB2.0, ULPI, Up to 480 Mbit/s)
- MCP - Samsung Semiconductor - K5W2G1GACH-BL60 (2Gb OneNAND Flash + 1Gb Mobile SDRAM)
- RF Transceiver - ST-Ericsson NMP #4380206 (Quad-Band GSM/GPRS/EDGE, Tri-Band WCDMA/HSDPA 850/900/2100)
Analog Baseband / Power Management
- Analog Baseband - ST-Ericsson - NMP #4396299
- Power Management - ST-Ericsson - NMP #4376535
- Skyworks SKY77514-20 Transmit Module - PAM, Quad-Band GSM/GPRS/EDGE, w/ Integrated Antenna Switch
- Skyworks SKY77421-20 PAM - Dual-Band WCDMA, 900/2100
- Texas Instruments - WL1251BLYFBR (Single Chip, 802.11b/g, Wilink 4.0, 90nm)
- Texas Instruments NL5350 GPS - Single-Chip, A-GPS, NaviLink 5.0
Bluetooth / FM
- Broadcom - BCM2048KUBG (Single Chip, V2.0+EDR, w/ FM+RDS Radio Receiver)
- 5.0MP, CMOS - Toshiba Semiconductor
- Sharp - LS024Q8UX09L (2.4" Diagonal, 16M Color TFT, 240 x 320 Pixels)