Overview / Main Features
The Acer TravelMate 5740-5896 is a business oriented, 15.6-inch display notebook computer powered by an Intel Core i3 350M processor and HM55 Express Chipset. This Acer laptop under analysis is configured with 2GB of DDR3-1333 of memory [on one SO-DIMM module], a 250GB hard-disk drive [running at 5400rpm], Broadcom 802.11n-capable WLAN module, as well as a lithium ion 6-cell battery. Also, the TravelMate 5740-5896 comes with a CD/DVD RW optical drive, Broadcom Bluetooth module and an integrated 1.3MP webcam.
Medium to Small Business Mobile Computing
Per press releases, first release in early 2010.
Pricing - The Acer TravelMate 5740-5896 is listed for as low as $675 USD on various online outlets (as of Sept. 2010).
Availability - Assumed global
For the purposes of this teardown analysis, we have assumed a lifetime production volume of 2M 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 are different by an order of magnitude, minor changes in volume (say 1 million vs. 2) rarely have a large net effect on our final analysis because of this.
Acer, according to iSuppli's PC Market Share 2009 database, is ranked as the number 2 notebook PC maker with approximately 30.5 million units shipped worldwide. This gives the Asian PC maker a 18.3 percent market share and a year to year growth in volume of 28% - a pace that outstrips that of the top notebook maker, HP (with 19.8% growth) for all of 2009.
Main Cost Drivers Representing ~79% of total materials cost
Intel - CP80617004161AC - CPU - Intel Core i3-350M, Dual Core, 2.26GHz, 3MB L3 Cache, 32nm Process - (Qty:1)
AU Optronics - B156XW02 - Display Module - 15.6' TN LCD, 1366 x 768 Pixels(HD), 16:9 Aspect Ratio, 0.252mm x 0.252mm Pixel Size, 262K Colors, 500:1 Contrast Ratio, 220cd/m^2 Brightness, 8ms Response Time, Active Area: 344.2mm x 193.5mm, LED Backlight, 3.3V, 5.5W - (Qty:1)
Toshiba Storage Device - MK2565GSX - Hard Drive - 250GB, 2.5', SATA 3Gb/s, 5400RPM, 8MB Buffer - (Qty:1)
Samsung Semiconductor - M471B5673FH0-CH9 - SO-DIMM DDR3-1333 - 2GB, 256Mx64, 1.5V - (Qty:1)
Sony Optiarc Inc. - AD-7585H - CD/DVD RW Drive - Slim Internal Type, Tray Load, SATA - (Qty:1)
AS10D31 - Battery Pack - Li-Ion, 6-Cell, 10.8V, 4400mAh, 48Wh - (Qty:1)
Intel - BD82HM55SLGZS - Platform Controller Hub - HM55 Express Chipset - (Qty:1)
Two 6-Layer PCBs
Foxconn - 6-Layer - FR4, Lead-Free, Halogen-Free - (Qty:1)
6-Layer - FR4, Lead-Free, Halogen-Free - (Qty:1)
Broadcom - BCM943225HM - WLAN Half Mini PCIe Module - IEEE802.11b/g/n, 2x2 MIMO, Contains Broadcom BCM43225 Single Chip Solution - (Qty:1)
Delta Electronics - ADP-65JH DB - AC Adapter - 19V, 3.42A, 65W, w/ 6ft Cord & Velcro Strap - (Qty:1)
Total BOM Cost $433.36
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.
Acer's Mobile PC manufacturing profile, , according to iSuppli's Global OEM Manufacturing and Design Analysis - GOMDA), is a completed outsourced model with Wistron, Quanta, Compal making up 35%, 26% and 25% respectively of their total output capacity.
Country of Origin / Volume Assumptions
Based on markings, the unit was likely 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 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 pincount of the device. This calculation is affected by country or region of origin as well.
Design for Manufacturing / Device Complexity
The Acer TravelMate 5740-5896 has an overall component count of 1815 (excluding box contents), of which 1331 resides on the motherboard. This level of complexity is typical of notebook computer at this specification.
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 Acer TravelMate 5740-5896 design:
Display Module - AU Optronics - B156XW02 - 15.6' TN LCD, 1366 x 768 Pixels(HD), 16:9 Aspect Ratio, 0.252mm x 0.252mm Pixel Size, 262K Colors, 500:1 Contrast Ratio, 220cd/m^2 Brightness, 8ms Response Time, Active Area: 344.2mm x 193.5mm, LED Backlight, 3.3V, 5.5W
Platform Controller Hub - Intel - BD82HM55SLGZS, HM55 Express Chipset
CPU - Intel - CP80617004161AC, Core i3-350M, Dual Core, 2.26GHz, 3MB L3 Cache, 32nm Process
I/O & Interface
Embedded Controller - Ene Technology - KB926QF
Ethernet Controller - Broadcom - BCM57780A1KMLG
Audio Codec - Realtek - ALC272X-GR
Level Shifter - ASMedia Technology - ASM1442
SO-DIMM - Samsung Semiconductor - M471B5673FH0-CH9, DDR3-1333 - 2GB, 256Mx64, 1.5V
WLAN Half Mini PCIe Module - Broadcom - BCM943225HM - IEEE802.11b/g/n, 2x2 MIMO, Contains Broadcom BCM43225 Single Chip Solution
Modem Module - Broadcom - BCM92046
Hard Drive - Toshiba Storage Device - MK2565GSX - 250GB, 2.5', SATA 3Gb/s, 5400RPM, 8MB Buffer
CD/DVD RW Drive - Sony Optiarc Inc. - AD-7585H - Slim Internal Type, Tray Load, SATA
Battery Pack - AS10D31, Li-Ion, 6-Cell, 10.8V, 4400mAh, 48Wh