Acquired Electronics360

Mobile Devices

Avaya 9620 IP Phone Teardown

15 December 2008
The following is an overview of a teardown analysis conducted by IHS Technology Teardown Services.

Overview / Main Features

Per Avaya Literature:

The 9620 IP Telephone features a 3.45 inch (9 cm) diagonal monochrome backlit display - which has been enhanced with higher resolution (1/4 VGA) versus other available monochrome telephones from Avaya. The 9620 supports up to 12 call appearances / administered feature keys - with three concurrent line appearances visible at any time.

Avaya 9620 IP Phone Main ImageAvaya 9620 IP Phone Main Image

Target Market

Enterprise, government agency, and institutional workspaces upgrading to or leveraging existing IP based telephony infrastructure.

Released

Per our understanding, first release in Q2 2007. This particular unit was manufactured date of October 8th 2007.

Avaya 9620 IP Phone - Main PCB TopAvaya 9620 IP Phone - Main PCB Top

Pricing and Availability

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 Avaya sales price may be in such a package for this unit. However, various units were found from e-tailers at the time of writing (September 2008) for prices ranging from $219 to $349 USD.

Availability - Global availability assumed.

Volume Estimations

For the purposes of this teardown analysis, we have assumed a lifetime production volume of 600,000 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. Minor changes in volume (say 1 million vs. 2 rarely have a large net effect on our final analysis.

Avaya 9620 IP Phone - Main PCB BottomAvaya 9620 IP Phone - Main PCB Bottom

Market / Sector Performance

IP Telephony is not an ongoing practice area for iSuppli, however per our own topical research in 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, Nortel leads the market share of the OEM Enterprise VoIP factory with 24% of the revenue with Avaya at 22% and Cisco at 17%. Both Avaya and Nortel are the market leaders in the hybrid ""flavor" of IP PBXs which makes up nearly 2/3 of the entire market while Cisco is the dominant player in the ""all IP" variant of the IP PBX market.

Avaya 9620 IP Phone Cost AnalysisAvaya 9620 IP Phone Cost Analysis

Cost Notes
Major Cost Drivers (Non-Mechanical - Representing ~48% of Total Materials)

  • Broadcom - BCM1103KPBG - Gigabit IP Phone Chip - 275MHz MIPS32 CPU, 125MHz ZSP DSP, 10/100BASE-T Ethernet MACs and PHYs, 130nm
  • Optrex - F-55023 - Display Module Value Line Item - 3.45 Inch Diagonal, Monochrome, 160 x 120 Pixels
  • Numonyx - JS28F128J3D-75 - Flash - NOR, 128Mb(16Mb x 8 / 8Mb x 16), 3V, 75ns
  • Topsearch - PCB - 6-Layer - FR4
  • Epson - S1D13700 - LCD Controller - Embedded Memory Graphics
  • Samsung Semiconductor - K4H561638H-UCB3 - SDRAM - 256Mb (16M x 16), 166MHz, 2.5V
  • Topsearch - PCB - 2-Layer - FR4

Materials and Manufacturing Costs $59.53

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.

Manufacturing Notes

OEM/ODM/EMS Relationships / Manufacturing

Avaya is assumed to be using EMS providers for manufacturing - designs are of unknown origins at this time (whether internal or outsourced).

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 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), 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.

Avaya 9620 IP Phone - Enclosure DisassemblyAvaya 9620 IP Phone - Enclosure Disassembly

Design for Manufacturing / Device Complexity

The Avaya 9620 IP phone has a component count of 707 (excluding box contents), of which, 154 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.

Design Notes

Here is a summary of the major components used in the Avaya 9620 design:

Main PCB

Processing

  • Gigabit IP Phone Chip - Broadcom - BCM1103KPBG

Memory

  • SDRAM - Samsung Semiconductor - K4H561638H-UCB3
  • Flash - Numonyx - JS28F128J3D-75

Interface

  • LCD Controller - Epson - S1D13700

Display

  • Display Module - Optrex - F-55023


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