Overview / Main Features
The Cisco 7975G is an upper tier IP phone model offering from Cisco's premier Unified IP Phone 7900 series (only the 7985G is more advanced). The phone features a large 5.6 inch graphical LCD touchscreen with 320 x 240 pixel resolution. Typical of the 7900 series line, the 7975G has a full duplex speakerphone with echo cancellation. Further, the 7975G offers a "wideband audio enhancement on the physical handset unit. This wideband enhancement works in conjunction with the G.722 codec and Cisco Unified Communications Manager 4.1 to produce richer audio experience during calls. Overall, the 7962G shares the same form factor / enclosure design as the 794x and 796x lines.
Other features of the 7975G include 2-port Ethernet solution for LAN connectivity along with a co-located PC, a headset port for hands-free use, 4-way toggle control toggle buttons, volume control buttons, dedicated 'messages', 'directory', 'service' and 'settings' keys with 4 soft keys along the bottom of the screen as well as 8 illuminated line buttons. The 7975G has corporate directory integrates with LDAP version 3 standard built in. The phone works as part of an integrated solution from Cisco - ""Cisco Unified Communication Solution" and is highly configurable and easily administered via LAN. It also accommodates Extensible Markup Language (XML) applications that take advantage of the large and usable color display.
Enterprise, government agency, and institutional workspaces upgrading to or leveraging existing IP based telephony infrastructure.
No release date was found for this device.
Pricing - Keeping in mind that this phone is unlikely to be purchased alone in a retail environment, but rather is sold more at an enterprise level as part of a larger package, it is difficult to say what a typical Cisco sales price may be in such a package for this unit. However, this unit was found from several e-tailers at the time of writing (September 2008) for $450 to $650 USD.
Availability - Global availability assumed.
For the purposes of this teardown analysis, we have assumed a lifetime production volume of 200,000 units over 3 years.
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. Minor changes in volume (say 1 million vs. 2) rarely have a large net effect on our final analysis.
Market / Sector Performance
IP Telephony is not an ongoing practice area for iSuppli, however per our topical research paper within the area of VoIP (""VoIP Market: Maturity Approaches but New Opportunities Arise" - Q3 2007), we expect the VoIP market to be dominated by the enterprise segment (which accounted for 45% of the VoIP equipment revenue in 2007 and is expected to grow to 50% of the market for VoIP equipment.
Furthermore, as the installed base of PBX lines approaches 50% IP in 2009, iSuppli expects the rate of growth of IP lines to slow from its estimated 2007 rate of 17% to less than 10% growth by 2010.
iSuppli further estimates, that in 2007, Cisco had 17% revenue market share of the OEM Enterprise VoIP factory revenue behind Avaya at 22% and Nortel at 24%. However, for ""all IP" PBX flavors of enterprise IP telephony networks, which makes up approximately 20% of the market, Cisco is the clear dominant supplier.
Major Cost Drivers (Representing 76% of Total Direct Materials Costs) - Top 20 Items
Innolux Display Corp. - AT056TN53 - Display Module Value Line Item - 5.6' Diagonal, 65K Color TFT LCD, 640 x 480 Pixels, w/ Touch Screen & Backlight
Texas Instruments (Cisco Systems) - F751916BGZDW - ASIC - IP Phone
Touchscreen Overlay - 4-Wire Resistive
Pan-International Industrial Corp. - 6-Layer - FR4
Broadcom - BCM5482A1KFBG - Gigabit Ethernet Transceiver - Dual Port, 10/100/1000 Base-T, 130nm
Button Insert - Injection Molded Plastic, 2-Shot (Qty:14)
Spansion - S29GL128P11TFI02 - Flash - NOR, 128Mb, 3V, 110ns, 90nm
Ceramic Multilayer - X5R/X7R (Qty:310)
Pulse Engineering - H2053BNL - Ethernet Magnetics Module - 10/100 Base-TX, VoIP, Dual-Port (Qty:2)
Button Insert - Clear Injection Molded Polycarbonate (Qty:9)
Enclosure, Main, Rear - Injection Molded ABS
Front Faceplate - Injection Molded ABS, Silver Painted, Silkscreened
Enclosure, Main, Front - Injection Molded ABS
Linear Technology - LTC3407EMSE-2 - Regulator - DC-DC Converter, Dual, Step-Down, 800mA, 2.25MHz (Qty:2)
Button Insert - Injection Molded Plastic, Silkscreened (Qty:6)
Samsung Semiconductor - K4H561638H-UCB3 - SDRAM - DDR, 256Mb (16M x 16), 166MHz, 2.5V
Rear Foot Stand - Injection Molded ABS
Texas Instruments - TSC2000IPW - PDA Analog Interface Circuit - w/ 12-bit A/D Resistive Touch Screen Converter & Drivers
AVX - TAJ Series - Tantalum - Encapsulated, 10V, 470uF, 85C, 20% (Qty:2)
Materials and Manufacturing $87.46
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
All the Cisco IP phones analyzed so far are labeled as made in China. We are assuming that this comes from an EMS provider in China that Cisco outsources to, possibly such as Foxconn with whom Cisco have relationships for other equipment manufacturing.
Country of Origin / Volume Assumptions
Based on markings, the unit was assembled in China. Furthermore, we have assumed that custom mechanicals (plastics, metals, etc.) were also sourced in China.
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 display module), 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 pin-count of the device. This calculation is affected by country or region of origin as well.
Design for Manufacturing / Device Complexity
The Cisco 7975G IP phone has an overall component count of 1105 (excluding box contents), of which, 173 are mechanical in nature.
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 China.
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 Cisco 7975G design:
- ASIC - Texas Instruments (Cisco Systems) - F751916BGZDW
- Gigabit Ethernet Transceiver - Broadcom - BCM5482A1KFBG
- SDRAM - Samsung Semiconductor - K4H561638H-UCB3
- Flash - Spansion - S29GL128P11TFI02
- Display Module - Innolux Display Corp. - AT056TN53