Standard definition QAM / IPTV Hybrid Set-Top Box with embedded IP networking over coaxial using MoCA technology (two-way IP data comm.) and features a single 64/256 QAM tuner (supporting MPEG-2 standard formats). As this box is standard definition it features only basic outputs (S-video, SPDIF (digital audio optical output), coaxial cable out, RCA video out, and two sets of RCA stereo jacks. It also features data out (D-sub 9 connector), USB, IR blaster and has a smart card reader for conditional access control.
This box is part of Motorola's IP Set-Tops group of devices. It seems that the "QIP series references to the fact that these boxes are both QAM tuner-equipped and IPTV-enabled. The QIP boxes we have analyzed includes two non-DVR versions (HD (QIP6200) and SD (this model)) and an HD/DVR version with 160GB HDD (QIP6416).
Per Motorola: ""The QIP2500 Hybrid QAM/IP set-top provides a full set of standard-definition television features and offers embedded IP networking.
Motorola's QIP series of Hybrid set-tops combine QAM digital signal transport and IP two-way communications. IP connectivity enables Video On Demand (VOD), DVR from multiple rooms, and media sharing with other connected devices on equipped cable networks, and also provides upstream return to the service provider to support advanced interactive applications."
Captive customer base of 'cable alternative' service providers - ie telco service providers. Whether VDSL, FiOS or other high-speed delivery system, IPTV will gain popularity as a cost-effective competitor of cable and satellite, as the pipeline required to deliver IPTV will also provide coincidental improvement in broadband service and facilitate the quality and quantity of VoIP devices.
January 2006 assumed per date of press release at this time. Verizon was the first service provider to offer the Motorola QIP series of set-top boxes.
Pricing and Availability
Pricing for this kind of product (at the consumer level) is meaningless as it is typically a completely subsidized part of a service package, and since it cannot function without being properly set-up by a service provider, after market product and prices have no validity.
The product should be available in the US (via Verizon). It may be available more broadly - but evidence of this was not found in Motorola literature and press releases.
For the purposes of this teardown analysis, we have assumed that Motorola will produce 5 million units of this STB during the product lifetime, which may, depending on the acceptance and penetration of IPTV may be more.
As a reminder, volume production assumptions are not meant to be necessarily 'market accurate', and our 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).
No performance testing was performed.
The QIP2500 is, in terms of cost, in line with the most recently analyzed and directly comparable STB in our history - which is the Motorola DCH100, an M-Card host box, with standard definition. Both boxes are based on the same core Broadcom BCM7115xxx chip, and share similar architecture, features, component counts and costs. This is good considering too, that the QIP2500 has the additional QAM tuning circuitry which adds cost.
Furthermore, Motorola is assumed to have a great deal of market presence and are assumed to leverage their purchasing power to the best of their ability, making their prices very competitive for all purchased components.
Main Cost Drivers
Silicon (Main PCB)
- Broadcom - BCM7115KPB - Single Chip Set-Top Box, w/ Personal Video Recording (PVR) - Qty(1)
- Entropic Communications - EN2010 - c.LINK Controller - For Coaxial Networks - Qty(1)
- Altera - EP1C6Q240C6 - FPGA - Cyclone, 5,980 Logic Elements, 92,160 RAM Bits, 185 Max. User I/O's, 2 PLLs - Qty(1)
- Alps - TDER5-501A - Tuner Module Value Line Item - Qty(1)
- Freescale - XC420061-006 - Microcontroller/Processor - ASIC - Qty(1)
- Entropic Communications - EN1010 - Coaxial Network Interface - Qty(1)
- Sanyo - LA7784FN - RF/IF Down Converter - Digital CATV, Consists of AGC Amplifier, Mixer - Qty(1)
- Sanyo - LV3130 - Analog IC - Qty(1)
- Hynix - HY5DU121622CTP-D43 - SDRAM - DDR, 512Mb (8M x 16x 4Banks), 2.6V, 200MHz@CL3 - Qty(1)
- Intel - RC28F640J3D-75 - Flash - NOR, 64Mb, 3V, 75ns, 0.13um - Qty(1)
- Samsung Semiconductor - K6F2016U4E-EF70 - SRAM - 2Mb (128K x 16), 70ns, 3.0V - Qty(1)
Internal Power Supply
Lite-On - PB-5180-1 - Power Supply - 18W, Input AC100-125V, 50-60Hz, 5A, Output +3.4V/0.7A, +5V/1.5A, +2.5V/2.8A, +9V/0.1A, -5/0.1A - Qty(1)
Total w/ Manufacturing $76.40
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.
Country of Origin / Volume Assumptions
Based on markings, the unit was assembled in Taiwan. Furthermore, we have assumed that custom mechanicals (plastics, metals, etc.) and other assemblies were sourced or produced in China to take advantage of lower cost structures there.
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 can tuners), 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
We tend to use component counts as the one measurable and clearly defined 'metric' by which we can compare and judge the relative complexity of devices and comment as to where a given device fits in the spectrum of overall manufacturing cost and complexity between devices.
The Motorola QIP2500 has a total component count of 1350 of which 78 are mechanical components (when accounting for the power supply and tuner modules as itemized complete BOMs). This component count is in-line with other boxes with similar functionality.
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.
The core design is based on a Broadcom BCM7115KPBG single-chip PVR decoder, with PVR capabilities. The same chip was found in the previously analyzed Motorola DCT2524/1612 STB (analyzed end 2004). The coaxial MoCA? home-networking (""c.Link") chipset is provided by Entropic, and consists of two chips found in the front-end and I/O interface areas of the devices. Beyond these 3 core chips, the most significant IC content in this design would include the Altera - EP1C6Q240C6 ""Cyclone" FPGA. It is interesting to note that we have rarely previously seen FPGAs or CPLDs in other set-top boxes. This is a first and adds noteworthy cost to the overall design. We assume this is related to security support.
In terms of design re-use it is interesting to note that the can tuner (Alps - TDER5-501A) is re-used in all QIP boxes.
Single Chip Set-Top Box, w/ Personal Video Recording (PVR) - Broadcom - BCM7115KPB
c.LINK Controller - For Coaxial Networks - Entropic Communications - EN2010
Microcontroller/Processor - ASIC - Xilinx - XC420061-006
Smart Card Interface IC - Teridian Semiconductor - 73S8024R-IL
Alps - TDER5-501A - Tuner Module (Can)
Coaxial Network Interface - Entropic Communications - EN1010
FPGA - Cyclone, 5,980 Logic Elements, 92,160 RAM Bits, 185 Max. User I/O's, 2 PLLs - Altera - EP1C6Q240C6
SDRAM - DDR, 512Mb - Hynix - HY5DU121622CTP-D43
Flash - NOR, 64Mb - Intel - RC28F640J3D-75
Power Supply (Internal)
Power Supply - 18W, Input AC100-125V, 50-60Hz, 5A, Output +3.4V/0.7A, +5V/1.5A, +2.5V/2.8A, +9V/0.1A, -5/0.1A - Lite-On - PB-5180-1