Overview / Main Features
The HP EliteBook 8440p is a business oriented, 14-inch display notebook computer powered by an Intel Core i5 520M processor and QM57 Express Chipset. This HP laptop under analysis is configured with 2GB of DDR3-1333 of memory [on one SO-DIMM module], a 250GB hard-disk drive [running at 7200rpm], Intel Centrino 802.11n-capable WLAN module as well as a lithium ion 6-cell battery. Also, the HP EliteBook comes with a CD/DVD RW optical drive and an integrated 1.3MP webcam.
Medium to Small Business Mobile Computing
Per press releases, first release in the beginning of 2010.
Pricing - This specific configuration of the HP EliteBook 8440p is listed for $1511 USD on HP's website (as of Sept. 2010).
Availability - Assumed global
For the purposes of this teardown analysis, we have assumed a lifetime production volume of 1.5M 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.
HP, according to iSuppli's PC Market Share 2009 database, remains the world's number one notebook PC maker with approximately 35 million units shipped worldwide. This gives the giant PC maker a 21.1 percent market share and a year to year growth in volume of 19.8%.
Main Cost Drivers Representing ~77% of total materials cost
Intel - CP80617004119AE - CPU - Intel Core i5-520M, Dual Core, 2.4GHz, 3MB L3 Cache, 32nm Process - (Qty:1)
Chi Mei Optoelectronics - N140B6-D11 - Display Module - 14' TFT LCD, TN Mode, 1366 x 768 Pixels, Pixel Size, 262K Colors, 200cd/m^2 Brightness, 8ms Response Time, Active Area: 309.4x173.95mm, LED Backlight - (Qty:1)
Hitachi - HTS725025A9A364 - Hard Drive - 250GB, 2.5', SATA 3Gb/s, 7200RPM, 16MB Buffer - (Qty:1)
Micron Technology - MT16JSF25664HZ-1G4F1 - SO-DIMM DDR3-1333 - 2GB, 256Mx64, 1.5V - (Qty:1)
Toshiba Samsung Storage Technology - TS-L633 - CD/DVD RW Drive - Slim Internal Type, Tray Load, SATA - (Qty:1)
Celxpert Energy - HSTNN-CB69 - Battery Pack - Li-Ion, 6-Cell, 10.8V, 5000mAh, 55Wh - (Qty:1)
Intel - BD82QM57SLGZQ - Platform Controller Hub - QM57 Express Chipset - (Qty:1)
HannStar - PCB - 6-Layer - FR4, Lead-Free, Halogen-Free - (Qty:2)
Intel - 622ANHMW - WLAN Half Mini PCIe Module Value Line Item - IEEE802.11a/b/g/n, 2x2 MIMO - (Qty:1)
PPP009H - AC Adapter - 18.5V, 3.5A, 65W, w/ 6ft Cord & Velcro Strap - (Qty:1)
Total BOM Cost $500.00
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.
HP's Mobile PC manufacturing profile, according to iSuppli's Global OEM Manufacturing and Design Analysis - GOMDA), is primarily an outsourced model with only 1.3% in house manufacturing capacity. HP uses Taiwanese ODMs as their outsourced manufacturing partners with Quanta, Compal and Inventec taking a 34%, 27% and 27% respectively.
Country of Origin / Volume Assumptions
Based on markings, the unit was likely assembled in China. Furthermore, we have assumed that custom mechanicals (plastics, metals, etc.) were also sourced 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 display module), 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 HP EliteBook 8440p has an overall component count of 2577 (excluding box contents), of which 1681 resides on the motherboard. This level of complexity is at the higher end of what we expect to see from a laptop of this specification.
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.
Here is a summary of the major components used in the HP EliteBook 8440p design:
Display Module - Chi Mei Optoelectronics - N140B6-D11 - 14' TFT LCD, TN Mode, 1366 x 768 Pixels, Pixel Size, 262K Colors, 200cd/m^2 Brightness, 8ms Response Time, Active Area: 309.4x173.95mm, LED Backlight
Platform Controller Hub - Intel - BD82QM57SLGZQ, QM57 Express Chipset
CPU - Intel - CP80617004119AE, Intel Core i5-520M, Dual Core, 2.4GHz, 3MB L3 Cache, 32nm Process
I/O & Interface
Flash Memory Card Controller - Ricoh - R5C835
Keyboard Controller - SMSC - KBC1098-NU
SO-DIMM - Micron Technology - MT16JSF25664HZ-1G4F1,DDR3-1333 - 2GB, 256Mx64, 1.5V
WLAN Half Mini PCIe Module - Intel - 622ANHMW - IEEE802.11a/b/g/n, 2x2 MIMO
Hard Drive - Hitachi - HTS725025A9A364 - 250GB, 2.5', SATA 3Gb/s, 7200RPM, 16MB Buffer
CD/DVD RW Drive - Toshiba Samsung Storage Technology - TS-L633 - Slim Internal Type, Tray Load, SATA
Battery Pack - Celxpert Energy - HSTNN-CB69