Overview / Main Features
The HTC G2 under analysis here is a HSPA+ smartphone designed exclusively for the North American wireless carrier T-Mobile. Not only does this new full QWERTY swivel slider boost to the first handset to take advantage of HSPA+ speeds but carries, within its electronic core, a newly redesigned 2nd generation Qualcomm MSM7230 Snapdragon chipset. Of the many feature improvements in this 2nd generation Snapdragon design, most notable are the evolution of feature integration into the Qualcomm chipset (the MSM7230 is now single chip design - as opposed to the early 3 chip multi-chip package solution of the QSD components - and also integrates GPS into the baseband processor / also, the QTR RF transceiver chip integrates both Bluetooth and FM capabilities to an already tightly integrated RF/PA solution).
Overall, the dual-band UMTS / quad-band GSM handset features a now standard (for Android) 3.7-inch touchscreen display and an unqiue fold out design to reveal a full QWERTY keypad. This new swivel design is an obvious alternative to slider mechanisms that tends to add thickness to the handset design or compromise on keyboard button quality.
The HTC G2 is also one of the few Android smartphones to come with onboard flash storage. In this case, a 4GB eMMC module is used.
High end smartphones
Pricing - The HTC G2 for the North America carrier T-Mobile sells for $199 with a two-year contract. A cursory search for unlocked versions of the device pegs the market price at around $500 to $700.
Availability - North America
For the purposes of this teardown analysis, we have applied a lifetime production volume of approximately 1M 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.
Main Cost Drivers ~8% of Total Materials Cost
Qualcomm - MSM7230 - Baseband Processor - Quad-Band GSM/EDGE, UMTS HSDPA 14Mbps, HSUPA 5.76Mbps, GPS, Integrated 800MHz ARM 11 CPU, 45nm, PoP
Display Module Value Line Item - 3.7' Diagonal, 16.7M Color TFT, 480x800 Pixels
Samsung Semiconductor - SDRAM - Mobile DDR, 4Gb, 1.8V, PoP
Touchscreen Assembly - 3.8' Diagonal, Capacitive, ITO Film Over Glass Faceplate, Painted, w/ Integral Flex PCB, & Board-to-Board Connector
Camera Module Value Line Item - 5.1MP, CMOS, 1/4' Format, Auto Focus Lens
SanDisk - MicroSD Memory Card - 8GB
SanDisk - SDIN502-4G - Flash - eMMC NAND, 4GB, MLC
Qualcomm - QTR8200 - RF Transceiver - Quad-Band GSM/GPRS/EDGE, WCDMA/HSDPA, Integrated Bluetooth & FM , 65nm RF CMOS
Unitech - 10-Layer - FR4/RCF HDI, 3+4+3, Lead-Free
Broadcom - BCM4329EKUBG - Bluetooth/FM/WLAN - Single Chip, WLAN IEEE802.11a/b/g/n, Bluetooth V2.1+EDR, FM Radio Receiver & Transmitter, 65nm
BB96100 - Battery - Li-ion, 3.7V, 1300mAh
Qualcomm - PM8058 - Power Management IC
TC U250 - Charger - AC to USB, 5V, 1A
2-Layer - Flex Kapton, Lead-Free, w/ Stiffener
Atmel - ATMXT224-CCU - Touchscreen Controller - Capacitive, 12-bit, 224-Channel Configuration, 400KHz, w/ I2C Interface
Enclosure, Main, Top - Injection Molded Polycarbonate, Painted, w/ Rubberized Coating, 2 Stamped / Formed Metal Plates, Painted & Spot Welded, w/ 15 Threaded Metal Inserts
High Intensity White (Qty:12)
Handsfree Accessory - Stereo, w/ Multimedia Control Buttons, Plastic Bag & Label
Avago Technologies - ACPM-7868 - PAM - Quad Band GSM / EDGE
Direct Materials + Manufacturing $169.40
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
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. Typically, first production runs of their flagship handset such as the N8 will be out of their Finnish facilities. Furthermore, 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 the level of sophistication and function of the device, we made the assumption that the unit was assembled in Taiwan. Furthermore, we have assumed that custom mechanicals (plastics, metals, etc.) were also sourced in Taiwan.
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 pincount of the device. This calculation is affected by country or region of origin as well.
Design for Manufacturing / Device Complexity
The HTC G2 under analysis here has an overall component count of 1104 (excluding box contents), of which, 753 reside on the main PCB. HTC handsets typically occupy our upper extreme chart of device complexity and the G2 is no exception. Major contributions to the is high component count is the extensive use of discrete passive components and mechanical complexity of a swivel slider design
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 Taiwan.
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.
As mentioned earlier, the significance of the HTC G2 design hints to the design evolution Qualcomm is taking with their 2nd generation Snapdragon chipset. After seeing years of multi-chip package solutions for their baseband processor, we've finally come across a fully integration single die baseband chip from Qualcomm. In fact, the MSM7230 - even though being fabricated on 45nm technology node - is surprisingly large die that integrates many of the discrete ICs we seen previously like a SDRAM and analog or power management IC. Qualcomm has gone a step further in their new generation design and added features such as GPS into the baseband processor. Also on the RF side, the new QTR8200 features even tighter integration of both Bluetooth and FM into the chip. By doing so, OEMs now can eliminate discrete Bluetooth and FM solutions from their BOMs - all of which will be bad news to competitive solutions providers like Broadcom and TI.
Here is a summary of the major components used in the HTC G2 design:
- Display Module - 3.7' Diagonal, 16.7M Color TFT, 480x800 Pixels
Apps Processing / Baseband
- Baseband Processor - Qualcomm - MSM7230
RF / PA
- RF Transceiver - Qualcomm - QTR8200
- PAM - Avago Technologies - ACPM-7868, Quad Band GSM / EDGE
- PAM - Skyworks - SKY77701, WCDMA/HSUPA 2100
- PAM - Skyworks - SKY77703, WCDMA/HSUPA 1700
- SDRAM - Samsung Semiconductor - K4X4G303PC-7GD, 8Mobile DDR, 4Gb, 1.8V, PoP
- Flash - SanDisk - SDIN502-4G, eMMC NAND, 4GB, MLC
- Power Management IC - Qualcomm - PM8058
BT / FM / GPS / WLAN
- Bluetooth/FM/WLAN - Broadcom - BCM4329EKUBG
- Touchscreen Controller - Atmel - ATMXT224-CCU (Touch)
- Microcontroller - Atmel - ATmega88PA-MU (Keyboard)
- Electronic Compass - AKM Semiconductor - AK8975B
- Accelerometer - Bosch Sensortec - BMA020