Acquired Electronics360

Mobile Devices

LG KG110 Mobile Phone Teardown

19 April 2007
The following is an overview of a teardown analysis conducted by IHS Technology Teardown Services.

Main Features

The LG KG110 is a dual-band GSM/GPRS 900/1800MHz candybar phone. It features a 1.5 128x128 pixels 65K CSTN display, WAP 1.2.1 browser, polyphonic ringtones and vibrating alert.

LG KG110 Mobile Phone Main ImageLG KG110 Mobile Phone Main Image

Overview

The LG KG110 is one of the budget phones that LG develops. The phone is very light weight (only 70g) but possess many features relative to other low-end phones in the market. It is a good budget phones for starters.

Target Market

Per LG's press release, it is ""Perfect for mobile users who want a simple phone without complicated features, but do not want to sacrifice style": translation: low-end mainstream or emerging markets. (First found reference online to this device through Indian website, in fact.

Released

First launch announced Dec 13 2006 per LG's press releases.

Pricing and Availability

Found on one Australian website for $106AU - ~$87 USD.

Volume Estimations

Based on LG'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 1.5 million 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 408 M GPRS handsets in the 2007 global market. Furthermore, we estimate shipments of 160 M dual band 900/1800 phones in the 2007 global market.

Function / Performance

Functional testing was not performed on the LG KG110, as the dual band phone would not operate with local US carriers.

LG KG110 Mobile Phone Cost AnalysisLG KG110 Mobile Phone Cost Analysis

Cost Notes

Main Cost Drivers Representing ~70% of total materials cost

Analog Devices - AD6720ABCZ - Baseband Processor - Single-Chip, GSM/GPRS

Display Module - 1.5' Diagonal, 65K CSTN, 128 x 128 Pixels

Spansion - S71PL129NB0HFW4B - MCP - 128Mb NOR Flash, 32Mb PSRAM, 3.0V

Unitech - - 6-Layer - FR4/RCF HDI, 1+4+1

LG - LGTL-GBIP-830 - Battery - Li-Ion, 3.7V, 780mAh (Capacity NOT Verifiable)

TriQuint Semiconductor - TQM6M4003 - Transmit Module - PAM - Quad-Band, GSM/GPRS, Integrated Antenna Switch & Power Control

LG - TA-25GR2 - Charger - 5.2V, 800mA

Analog Devices - AD6548BCPZ - RF Transceiver - Quad-Band GSM/GPRS, Othello-G, ZIF, w/ Integrated VCO, PLL Loop Filters, and Tank Circuit

Total BOM Costs (w/Manyfacturing) $37.46

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.

Manufacturing NotesLG Relationships / Manufacturing

LG is still experimenting with its outsourcing strategies. So far, LG has retained the majority (over 80%) of its design and manufacturing in house. Only in recent years did LG start to use a number of Taiwanese ODMs for smart phones and low-cost GMS and CDMA phones.

Country of Origin / Volume Assumptions

The LG KG110 is labeled Made by LGE as oppose to the 2 recent analyzed LG phones that was labeled Made in Korea. Nonetheless, it is assumed that the product is made in China, in absence of proof to the contrary, as this incurs lowest regional manufacturing costs. Furthermore, we have assumed that for this model, that PCB was also populated in China, and that custom mechanicals (plastics and metals) were also sourced domestically 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.

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. 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

Total components count in the LG KG110 is 371, 2nd highest among the competing phone analyzed. As we have not seen too many of LG phones (especially candybar), it is difficult to say if it is an average LG count or not. Mechanically, it only has a count of 56 components which is actually the lowest relative to other competing phones that we analyze.

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

The phone is based upon the core Analog Devices single-chip baseband. Of the couple LG GSM phones analyzed, all of them have Analog Devices as the supplier in their baseband section. The only difference is that the KG110 has a single-chip solution whereas in the past the ABB and DBB chips are separated.

TriQuint's transmit module is found in the PA section. So far in LG designs, almost all the PAs were from a different supplier. We have yet to see who would become the main player in the PA section as we have not seen enough LG designs.

Analog Devices also supplied the RF IC in the KG110. Similar to the case for PA, LG has a couple of RF IC suppliers and it is difficult to say what LG's strategy is in terms of selecting the suppliers.

Here is a summary of the major components used in the LG KG110 design:

Main PCB Baseband

Analog Devices - AD6720ABCZ - Baseband Processor - Single-Chip, GSM/GPRS

Memory

MCP - Spansion - S71PL129NB0HFW4B - 128Mb NOR Flash, 32Mb PSRAM, 3.0V

RF/PA

Transmit Module - TriQuint Semiconductor - TQM6M4003 - PAM - Quad-Band, GSM/GPRS, Integrated Antenna Switch & Power Control

RF Transceiver - Analog Devices - AD6548BCPZ - Quad-Band GSM/GPRS, Othello-G, ZIF, w/ Integrated VCO, PLL Loop Filters

Display Module

1.5' Diagonal, 65K CSTN, 128 x 128 Pixels



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