Overview / Main Features
The LG KP151q is a low cost quad-band GSM/GPRS handset developed and marketed to emerging markets. In this case, the ruby red flip phone appears only to be exclusive to the Brazilian market. Overall, the 2.5G handset features a 1.5 inch CSTN display with 65,000 colors, VGA resolution camera and FM radio.
Pricing and Availability
Pricing - Mobile handset pricing typically has little bearing on the true market value of the device due to the fact that service carrier invariably use subsidies to incentivize consumers to commit to long term service contracts.
Availability - Brazil
For the purposes of this teardown analysis, we have assumed a lifetime production volume of 2M 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 Representing ~70% of total materials cost
Texas Instruments - D659IBQA - DBB / RF Transceiver - Single-Chip, Quad-Band GSM/GPRS, TI LoCosto
Giantplus - GPM693F0 - Display Module Value Line Item - 1.5' Diagonal, 65K CSTN, 128 x 128 Pixels
Battery - Li-Ion, 3.7V, 800mAh
Spansion - S71NS128PC0ZJETV - MCP - 128Mb NOR Flash + 64Mb PSRAM, 90nm Process
Camera Module Value Line Item - VGA, CMOS, Fixed Lens
Texas Instruments - TWL3031FZPH - ABB - Analog Baseband / Power Management, TI LoCosto
Salcomp - Charger - 5.6V, 400mA, 1.5m Cord, w/ Clear Plastic Bag Packaging
LG Innotek - 6-Layer - FR4/RCF HDI, 1+4+1
Handsfree Accessory - Stereo, Earphone / Microphone, w/ Single Control Button, w/ Clear Plastic Bag Packaging
Skyworks - SKY77318-12 - PAM - Quad-Band GSM/GPRS
Enclosure, Display, Bottom - Injection Molded Polycarbonate, Printed, Clear Coat, Painted, w/ 2 Brass Threaded Inserts
Keypad Assembly - Injection Molded Plastic Keys, Painted, Printed, Chromed, on Silicone Rubber Substrate
FEM - Quad-Band Antenna Switch, w/ SAW Filters
Enclosure, Main, Top - Injection Molded Polycarbonate, Painted, Clear Coat, w/ 4 Brass Threaded Inserts
4-Layer - Flex Kapton
Enclosure, Main, Bottom - Injection Molded Polycarbonate, Painted
Enclosure, Display, Top - Injection Molded Polycarbonate, Painted
Enclosure, Main, Battery Cover - Injection Molded Polycarbonate, Painted
Total BOM Cost $37.48
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
Based on iSuppli's "Global OEM Manufacturing and Design Analysis - Q1 2009, LG contracts out manufacturing on KP model handsets to EMS providers such as Arima and Felxtronics. However, on the whole, LG's manufacturing profile is a majority 95% in house manufacturing. Specifically, in the Brazilian market, LG has manufacturing presence as well as their EMS partners.
Country of Origin / Volume Assumptions
Based on markings, the unit was assembled in Brazil. Furthermore, we have assumed that custom mechanicals (plastics, metals, etc.) were also sourced in Brazil.
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 LG KP151q has an overall component count of 477 (excluding box contents), 118 of which are mechanical in nature. Within this context, the KP151q is one of the simplest flip phone handset designs we have come across and represents the low end of the handset complexity scale.
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 Brazil.
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.
Central to the KG KP151q's design is the use of TI's LoCosto chipset which features an integrates the digital baseband and RF radio in a single chip as well as another integrated analog baseband / power management single chip solution. Other major IC components include Skyworks power amplifier module (PAM), Spansion memory package and Silicon Lab FM radio solution.
Here is a summary of the major components used in the LG KP151q design:
Digital Baseband / RF Transceiver
- Texas Instruments - D659IBQA (TI LoCosto)
Analog Baseband / Power Management
- Texas Instruments - TWL3031FZPH (TI LoCosto)
- Spansion - S71NS128PC0ZJETV
- Skyworks - SKY77318-12
- Silicon Laboratories - Si4702-C19-GM -FM Radio Tuner
- Giantplus - GPM693F0 - 1.5' Diagonal, 65K CSTN, 128 x 128 Pixels