LG KP106b Mobile Phone Teardown

Overview / Main Features

The LG KP106b is a basic candybar dual-band GSM/GPRS handset developed and marketed to emerging markets. In this case, the KP106b appears only to be exclusive to the Brazilian market. The 2.5G handset features a 1.5 inch CSTN display with 65,000 colors and FM radio.

LG KP106b Mobile Phone Main Image

Emerging markets

Released

unknown

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

Volume Estimations

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.

LG KP106b Mobile Phone - Main PCB Bottom

Main Cost Drivers Representing ~74% of total materials cost

Infineon - PMB7880 - Baseband / RF Transceiver / Power Management - Single-Chip, Dual-Band, GSM/GPRS 900/1800

Sharp Microelectronics - LM15TGFNZ - Display Module Value Line Item - 1.5' Diagonal, 65K Color CSTN, 128 x 128 Pixels

Battery - Li-Ion, 3.7V, 900mAh

Skyworks - SKY77518-11 - Transmit Module - PAM, Dual-Band, GSM/GPRS 900/1800, w/ Integrated Antenna Switch

Salcomp - Charger - 5.6V, 400mA, 1.5m Cord, w/ Clear Plastic Bag Packaging

Unitech - 4-Layer - FR4/RCF HDI, 1+2+1

Handsfree Accessory - Stereo, Earphone / Microphone, w/ Clear Plastic Bag Packaging

Keypad Assembly - Injection Molded Silicone Rubber / Plastic Keys, Painted, Chromed

Spansion - S71GL032N40BFW0P - MCP - 32Mb NOR Flash + 4Mb PSRAM, 110nm Process

Loudspeaker - Receiver / Ringer Combo, w/ 2 Integral Gold Plated Contacts

Total BOM Cost $25.39

LG KP106b Mobile Phone Cost Analysis

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.

Manufacturing Notes

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.

LG KP106b Mobile Phone - Enclosure Disassembly

Design for Manufacturing / Device Complexity

The LG KP106b has an overall component count of 288 (excluding box contents), 65 of which are mechanical in nature. Within this context, the KP106b is one of the simplest 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.

Design Notes

Central to the KG KP106b's design is the use of Infineon's PBM7880 chipset which integrates the digital baseband and RF radio in a single chip. Other major IC components includes Skyworks power amplifier module (PAM), Spansion memory package and Silicon Lab FM radio chip.

Here is a summary of the major components used in the LG KP106b design:

Main PCB

Baseband / RF / Power Management

• Infineon - PMB7880

Memory

• Spansion - S71GL032N40BFW0P

Power Amplifier

• Skyworks - SKY77518-11 - Transmit Module

User Interface

• Silicon Laboratories - Si4702-C19-GM - FM Radio Tuner

Display

Display Module

• Sharp Microelectronics - LM15TGFNZ - 1.5' Diagonal, 65K Color CSTN, 128 x 128 Pixels

"

LG KP106b Mobile Phone - Box Contents