The Nokia 2610 is a low-end candybar phone supporting GSM/GPRS 900/1800MHz (or 850/1900MHz in some markets). The phone comes with a 1.5 128x128 pixels 65K CSTN display, WAP accessibility, MP3 ringtones, speaker phone, vibration alert and voice recorder.
The Nokia 2610 is a relatively feature-rich candybar phone in the low-end segment. According to Nokia's press release, it is the first for entry-level phone to have email support and a WAP browser. As a tradition of Nokia, the 2610 offers user friendly menu and a well-balanced feature set.
Per Nokia's press release, the 2610 is targeted at first time users in new growth markets like China and India.
Per Nokia's press releases - shipment begins in Q2 2006
Pricing and Availability
Per Nokia's press release, estimated retail price of ~75 euros at time of introduction.
Based on Nokia'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 13 Million units over a 2-year lifetime. (Sony Ericsson requested 16 Million units be used for cost estamation)
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 42 M GSM in the 2007 global market. We further estimate shipments of 34 M dual band 900/1800 phones in 2007 global market.
Function / Performance
Functional testing was not performed on the Nokia 2610
Main Cost Drivers Representing ~73% of total materials cost
NMP #4850877 - Display Module - 1.5' Diagonal, 65K CSTN, 128 x 128 Pixels
Samsung - K5U2817ATM-SF70 - MCP - 128Mb NOR Flash, 16Mb PSRAM
Texas Instruments - NMP #4377401 (F771676A) - DBB - Digital Baseband Processor, 65nm
Nokia - BL-5C - Battery - Li-Ion - 3.7V, 970mAh
UniMicron - Main PCB - 6-Layer - FR4/RCF HDI, 1+4+1
Renesas - PF88112B - PAM - Quad-Band, GSM/GPRS, w/ Integrated Antenna Switch
AC-2E - Charger - 5.3V, 500mA
ST Microelectronics - NMP #4376521 - ABB - Analog Baseband / Power Management
Infineon - NMP #4380103 (PMB3258) - RF Transceiver - Quad-Band, GSM/GPRS
Keypad Assembly - Injection Molded Plastic Keys, Silkscreened, Painted & Chromed, on Silicone Rubber Substrate
Total BOM Costs (w/Manufacturing) $36.90
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 NotesNokia Relationships / Manufacturing
We do not currently know, down to the model, where specific models may be manufactured, or by what EMS/ODM. The only information we have for these teardown analyses is typically limited to what is noted (except for handset country of origin labeling which are still used as the driving assumptions for manufacturing costs).
Having said all of this about relationships - Nokia are assumed to be performing almost all of their own manufacturing work in house at one of 10 plants placed worldwide (about 75%), and furthermore, we estimate that approximately 80% or more of all production takes places in low-cost Nokia facilities, with the remainder in mid and high-cost countries. Major external partners include Elcoteq, Jabil and Foxconn (as of 2005).
Country of Origin / Volume Assumptions
This model was labeled as built in Hungary. Many Nokia phones previously analyzed were also labeled as made in Hungary, a popular manufacturing location for Nokia. It was assumed furthermore that the plastics and other mechanicals, as well as the assembly of the PCBA took place in Hungary to minimize costs.
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
The Nokia 2610 has a very low component count of 326 which is the lowest among the competing phones in this quarter. However, being a Nokia which generally have lower count and in this particular case where the phone is a bare-bone candybar and has no extra features like a camera or FM radio, the 326 count for the 2610 does not seem surprisingly low.
As a candybar phone and thus mechanically simple, the 2610 has a mechanical components count of 67 which is in line of the competing phones we have analyzed. Indeed most of the simple candybar phones we have seen have a mechanical count in the 60-70s range.
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.
The Nokia 2610 is a common Nokia design with TI's DBB, ST Microelectronics's ABB/Power Management device, PA from Renesas and RF transceiver from Infineon.
The most interesting point here is that according to Chipworks, the DBB chip is one of the first that utilizes TI's 65nm process technology
Here is a summary of the major components used in the Nokia 2610 design:
Main PCB Baseband
DBB - Texas Instruments - NMP #4377401 (F771676A) - Digital Baseband Processor, 65nm
ABB - ST Microelectronics- NMP #4376521 - Analog Baseband / Power Management
MCP - Samsung - K5U2817ATM-SF70 - NOR Flash 128Mb, PSRAM 16Mb
RF/PA (full descriptions for these components were assumed and could not be confirmed)
PAM - Renesas - PF88112B - Quad-Band, GSM/GPRS, w/ Integrated Antenna Switch
RF Transceiver - Infineon - NMP #4380103 (PMB3258) - Quad-Band, GSM/GPRS
NMP #4850877 - 1.5' Diagonal, 65K CSTN, 128 x 128 Pixels