This teardown analysis encompasses only the motherboard and peripheral PCB assemblies of a HP Pavilion dv5-1002us entertainment notebook computer featuring an AMD Turion X2 Ultra Dual-Core processor and AMD RS780M Northbridge / AMD SB700 Southbridge chipset solution.
For the purposes of this analysis, product lifetime volume is presumed to be 125K units.
As a reminder, 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), and not necessarily as a market accurate estimate for a specific model. Our estimations are based on iSuppli market research and we derive rational estimates based on overall market shares of the manufacturer in question, as well as the number of products in a given portfolio and the relative popularity of certain lines of products.
Main Cost Drivers Representing ~74% of Total Direct materials Costs
AMD - TMZM80DAM23GG - CPU - AMD Turion X2 Ultra Dual-Core ZM-80, 2.1GHz, 2MB L2 Cache, 1800MHz Bus, 65nm Process
AMD - 216-0674026 - Northbridge - Graphics Controller (AMD RS780M Series)
Heatsink/Cooler/Fan Assembly - Die Cast Metal Pate w/ Copper Tube, w/ Integral Delta 5V DC Brushless Blower
HannStar - 6-Layer - FR4
AMD - 218S7EBLA12FG - Southbridge - I/O Controller Hub (AMD SB700 Series)
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.
Country of Origin / Volume Assumptions
The HP Pavilion dv5-1002us motherboard is assumed to be produced 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 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.
Design for Manufacturing / Device Complexity
The total component counts of the HP laptop motherboard are as follows:
- Motherboard 1583
- Peripheral PCBs 85
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.