Overview / Main Features
The HTC Touch HD2 is Windows Mobile (6.5) smartphone powered by a Qualcomm 1GHz SnapDragon processor which also features a large 4.3 inch LCD display. Much like the current trends of growing display sizes on the high end mobile devices, the HTC HD2 attempts to improve usability of smartphones by providing yet larger screen real estate.
The Touch HD2 features a first for Windows Mobile device: a capacitive touchscreen which we have seen now for over 3 years on the Apple iPhone as well as various Palm, Blackberry and Android devices. The HD2 features a very similar design to the Toshiba TG01 which we have previously analyzed that also features a heavy reliance on Qualcomm components.
Overall, the dual band UMTS and quad band GSM is designed for the North American market featuring the AWS spectrum compatibility for T-Mobile 3G network. The smartphone features a 5MP camera, WiFi, Bluetooth and GPS capabilities which has become the standard features set of high end mobile devices.
Per press release, first release in early 2010 on the T-Mobile (US) network.
Pricing - At the time of writing (Aug. 2010), T-Mobile US is offering the HD2 for a suggested retail of $449.99 or $149.99 with a 2 year contract.
Availability - North America
For the purposes of this teardown analysis, we have assumed a lifetime production volume of 500K 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 ~80% of total materials cost
Qualcomm - QSD8250 - Baseband Processor - Quad-Band GSM/GPRS/EDGE, UMTS HSPA, 1GHz CPU, 600MHz DSP, WiFi, Bluetooth, gpsOne, 3D Graphics, Mobile Broadcast TV
Sharp Microelectronics - LQ043Y1DX01 - Display Module Value Line Item - 4.3' Diagonal, 16.7M Color LCD, 480 x 800 Pixels
Samsung Semiconductor - KBY00U00VM-B450 - MCP - 4Gb NAND Flash + 3Gb Mobile SDRAM (Estimated)
Elan Microelectronics - IW1004A - Touchscreen Assembly / Display Window - 4.3' Diagonal, Capacitive, Glass Overlay, Painted, Printed
Camera Module Value Line Item - 5.0MP CMOS, 1/3.2' Format, Auto Focus Lens
Broadcom - BCM4329EKUBG - Bluetooth/FM/WLAN - Single Chip, WLAN IEEE802.11a/b/g/n, Bluetooth V2.1+EDR, w/ FM Radio Transceiver
Panasonic - 10-Layer - FR4 HDI, Stacked Via
Battery - Li-Ion, 3.7V, 1230mAh
Qualcomm - PM7540 - Power Management IC - w/ Integrated USB Transceiver
Qualcomm - RTR6285 - RF Transceiver - ZIF, Quad-Band GSM/EDGE, Tri-Band UMTS Transceiver, HSDPA, w/ Integrated GPS Receiver & Receive Diversity
Handsfree Accessory - Stereo, w/ Media Control Button, w/ Label & Rubber Band & Plastic Clip
UniMicron Technology - 4-Layer - Rigid/Flex Hybrid, FR4/Kapton
Delta Electronics.Inc - EADP-5LB A - Charger - 5V, 1A, AC to USB Type A
Enclosure, Main, Top - Stamped / Formed Stainless Steel, 4-Piece, 25 Laser Welds Points, w/ 2 Insert-Molded Plastic Pieces, 9 Threaded Standoffs, w/ PSA
Total BOM Cost $137.17
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 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 HTC Touch HD2 has an overall component count of 1086 (excluding box contents), of which 833 components reside on the Main PCB assembly. Compared to other smartphones we've analyzed in the past, the Legend occupies the upper extremes of the complexity curve (>1000 parts).
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 HTC Touch HD2 design:
- Baseband Processor - Qualcomm - QSD8250
Bluetooth / FM / WLAN
- Bluetooth/FM/WLAN IC - Broadcom - BCM4329EKUBG
Battery / Power Management
- Power Management IC - Qualcomm - PM7540
- Samsung Semiconductor - KBY00U00VM-B450 - 4Gb NAND Flash + 3Gb Mobile SDRAM (Estimated)
- RF Transceiver IC - Qualcomm - RTR6285
- Touchscreen Controller - Atmel - ATmega88V-10MU
- Display Module - Sharp Microelectronics - LQ043Y1DX01 (4.3' Diagonal, 16.7M Color LCD, 480 x 800 Pixels)