Tri-band GSM/GPRS/EDGE with HSDPA 7.2Mbps, HSUPA 5.76Mbps capabilities (thanks to Qualcomm's MSM7200 chipset). This slider smartphone also features a resistive touchscreen, slide out keypad, 2MP primary camera (SGA secondary), Bluetooth V2.0, and media play features, etc. Oddly - unlike the HTC Touch we looked at in Q3, this one has HSDPA/HSUPA, but no WiFi - clearly they are assuming users will prefer the high-speed always-on network connection and see no need for the more limited WiFi feature.
Based on the name, style and focus on it's touchscreen, the Touch line from HTC also sees itself competing in the same space as the Apple iPhone. Again, the additional feature applied here that is not on the iPhone is the slide-out keyboard feature giving users two methods of entering text and numbers into the phone.
Internally the MSM7200 from Qualcomm is the core chip in the design and does all the heavy lifting (there is no extra applications processor), although it does also feature a Xilinx Cool-Runner CPLD (found in other HTC designs - and seems unique to HTC designs.
In Q3 2007 we had a preliminary look at the HTC Touch phone. It has so little to do with the HTC Touch dual in terms of features set and internal construction - it seems the only connection between the two HTC Touch models is in fact the 'touch' screen and "Touch FLO which, of course is an attempt to leverage the success of the iPhone's unique mutlitouch technology and user experience.
First of all, the HTC Touch, by it's name alone draws your attention to the touchscreen. So what's special about it? Nothing, as far as we can tell. It's a conventional 4-wire resistive membrane applied to a conventional display. No ground-breaking technology here. In fact, 4-wire touchscreens have been around for a decade of more on mobile devices. What makes the touch a little different from other conventional touchscreen phones that preceded it is the software interface that goes along with the touch function. Obviously HTC took a page (several in fact several) out of the Apple book by having things such as the ability to 'flick' pages up and down as if physically moving them.
Furthermore, much of the screenshots from the HTC website also clearly are designed to look very much (weather pages, web surfing) like the iPhone. Bear in mind, of course that Apple's touch technology approach is quite different and the 'multi-touch' aspect is not generally supported using 4 wire resistive (single point) technology. Consumers may not care as long as the interface is functional, responsive and aesthetically pleasing.
Internally the HTC Touch resembles other recently analyzed HTC smartphones - interestingly, whereas this design is dominated by the Qualcomm MSM7200, the original HTC Touch was totally dominated by Texas Instruments, and is based on a TI OMAP850AZVL (seen in HTC S310 and Qtek 8500 from HTC) core processor , with a TI TWL3027xxx analog baseband / power management chip in tow (again - seen in S310 / Qtek 8500). In both designs, TI also provides the Bluetooth solution.
Consumers in developed markets attracted to iPhone-style smartphone features - 3G, touchscreen interface, media, etc. Based on the success of iPhone, phones may find, in general, and regardless of manufacturer that this the 'shape of things to come' with phones become more consumer-oriented mobile web-surfing / media player devices and a little less 'phone'.
Per press releases - January 2008.
Pricing and Availability
Street prices unsubsidized found online range from $530 to $699 (USD) at the time of writing (2/08).
Based on HTC's market shares, and our estimates of market volume shipments by manufacturers and market segments (see iSuppli Design Forecast Tool (DFT) data below), we are assuming a total production volume for this model of 600K units over a 2-year lifetime.
As a reminder, teardown volume production assumptions are meant primarily to be 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.
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.
From our most recent revision of this tool iSuppli estimates shipments of 168 million HSDPA handsets to ship in the 2008 global market; and we further estimate unit shipments of 289 million 2 megapixel equipped phones in the 2008 global market.
Nonetheless, given HTC's low market share and niche-player status, we have assumed production volumes for this particular model will be modest, and will depend largely on pick-up by a major service provider.
Function / Performance
Functional testing was not performed on the HTC Touch Dual.
Main Cost Drivers Representing ~60% of total materials cost
Qualcomm - MSM7200 - Baseband Processor - Single Chip, Quad-Band GSM/GPRS/EDGE, HSDPA 7.2Mbps, HSUPA 5.76Mbps, Integrated 400MHz ARM11 Applications Processor & 274MHz ARM9 uProcessor - Qty(1)
60H00108-00M - Display Module - 2.6' Diagonal, 65K Color TFT, 240 x 320 Pixels, w/ 4-Wire Touchscreen Overlay - Qty(1)
Samsung - KAL009001M-D1YY - MCP - 2Gb NAND Flash, 1Gb Mobile SDRAM, 1.8V - Qty(1)
Primary Camera Module - 2.0MP CMOS, 1/4' Format - Fixed Lens - Qty(1)
NIKI160 - Battery - Li-Ion Polymer, 3.7V, 1120mAh - Qty(1)
Qualcomm - MXU6100 - RF Transceiver - Quad-Band GSM/GPRS/EDGE, WCDMA/HSDPA 2100, w/ 5 RX SAW Filters - Qty(1)
Touchscreen Overlay - 4-Wire Resistive, w/ Flex PCB - Qty(1)
Qualcomm - PM7540 - Power Management IC - Qty(1)
Secondary Camera Module - SGA CMOS, 400 x 400 Pixels, 1/9' Format - Fixed Lens - Qty(1)
Murata - HFQA55 - Transmit Module - PAM - Quad Band GSM EDGE 850/900/1800/1900 w/ Integrated Power Control & Antenna Switch - Qty(1)
Bluetooth Module Line Item Value - V2.0+EDR - Qty(1)
Phihong - PSAA05A-050 - AC Adaptor - 5V, 1A - Qty(1)
Texas Instruments - BRF6300C - Bluetooth - Single Chip Solution, V2.0+EDR, 90nm Process - Qty(1)
Materials & Manufacturing $141.57
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 and 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.
HTC Relationships / Manufacturing
HTC is an important ODM partner offering smartphones and PDAs to a number of international service providers, including Vodafone. Vodafone is in fact one of HTC's top customers. We believe that HTC are producing most of their phones in house. In fact, iSuppli globally estimated that about 80% of handsets (all manufacturers mixed) in 2006 were produced 'in-house' by handset OEMs or ODMs, with a growing percentage of EMS-produced devices. HTC, as a Taiwanese company is assumed in our teardown analysis to produce, when possible, and where noted on the labels in mainland China, and sometimes in Taiwan.
Country of Origin / Volume Assumptions
This product is labeled as Made in Taiwan, furthermore, we have assumed that for this model that PCB was also populated in Taiwan, but that custom mechanicals (plastics and metals) were sourced in China (PRC).
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 chargers), 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.
The issue of labor rates was revisited in Q2 2006 as we began to apply some research by one the major worldwide EMS suppliers and are now applying some of their research on total loaded costs by country and region to arrive at these new rates which are pronouncedly higher on the low end in China (due to multiple risk-loading factors taken into account in this study). Remember 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.
Design for Manufacturing / Device Complexity
The total component count in this HTC device seems modest at 688 components (of which 177 are mechanical) when compared with previously seen HTC devices which always seemed to a take a very discrete (as opposed to integrated) approach to adding features. The result seemed to always be a huge amount of discrete components, more complex high-density interconnect PCBs with elevated layer counts. The crowning achievement for HTC was the XDAIII which sported almost 1500 components! That puts smartphone potential complexity into perspective.
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.
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.
We have seen the recent rapid evolution from EDGE handsets to HSDPA 1.8, then 3.6 and now 7.2Mbps link speeds with HSUPA 5.76Mbps uplink speeds. During this rapid evolution in handsets torn down over a period of less than two years - all of the chipsets we have seen have been the same ones over and over - from Qualcomm. Those chipsets all revolve around the MSM6275 (1.8Mbps), MSM6280 (3.6Mbps upgradable to 7.2Mbps), and now this MSM7200 (7.2Mbps with HSUPA). Despite competing solutions, we have yet to see much of the competition in HSDPA chipsets - Qualcomm dominates this segment for now based on our hardware exposure as of early 2008.
Interestingly, the HTC Touch Dual (P5520) bears little resemblance to the recently analyzed HTC Touch. They are very different designs. The HTC Touch Dual is dominated by the application of the Qualcomm MSM7200 which leaves little else for other chips to do, and little budget left for them to design in other major chips! Another interesting note - a first sighting of the Qualcomm RF Transceiver - MXU6100. Previous designs using the MSM7200 used discrete Qualcomm RF transceivers for GSM and WCDMA.
As a comparative sidenote, the original HTC Touch design was driven by Texas Instruments, and was based on a TI OMAP850AZVL (seen in HTC S310 and Qtek 8500 from HTC) core processor , with a TI TWL3027xxx analog baseband / power management chip supporting it.
Here is a summary of the major components used in the HTC Touch Dual (P5520) design:
Baseband Processor - Qualcomm - MSM7200 - Single Chip, Quad-Band GSM/GPRS/EDGE, HSDPA 7.2Mbps, HSUPA 5.76Mbps, Integrated 400MHz ARM11 Applications Processor & 274MHz ARM9 uProcessor
CPLD - Xilinx -XC2C64A-7CPG56C - CoolRunner-II, 64 Macrocells, 45 I/Os, 0.18um
Battery / Power Management
Power Management IC - Qualcomm - PM7540
MCP - Samsung - KAL009001M-D1YY - 2Gb NAND Flash, 1Gb Mobile SDRAM, 1.8V
RF Transceiver - Qualcomm - MXU6100 - Quad-Band GSM/GPRS/EDGE, WCDMA/HSDPA 2100, w/ 5 RX SAW Filters
Transmit Module - PAM - GSM - Murata - HFQA55 - Quad Band GSM EDGE 850/900/1800/1900 w/ Integrated Power Control & Antenna Switch
Transmit Module - PAM - WCDMA Murata - HFQA29 - 2100, w/ Integrated SAW Duplexer
Bluetooth - Texas Instruments - BRF6300 - Single Chip Solution, V2.0+EDR, 90nm Process
Primary Camera Module - 2.0MP CMOS, 1/4' Format - Fixed Lens - Image sensor - Samsung Semiconductor - S5K4B1FX03
Secondary Camera Module - SGA CMOS, 400 x 400 Pixels, 1/9' Format - Fixed Lens (Image Sensor: Omnivision - OV6680)
2.6' Diagonal, 65K Color TFT, 240 x 320 Pixels w/Touchscreen (4-wire resistive)