IHS Insight Perspective
Per IHS iSuppli Compute Platforms research area: Shipments this year of non-ultrathin notebook PCs are forecast to be 196 million units and are expected to fall to 183 million units in 2013. However, overall notebook PCs shipments are actually growing from 216 million units in 2012 to 248 million in 2013 due to the expected increase of ultathin and ultrabook shipments. And by 2015, the total number of ultrathin and ultrabook shipments is expected to surpass non-ultrathin notebook PCs by 50M.
Ultrathin includes Intel Ultrabook, AMD Ultrathin, other Intel-based Ultrathins such as MacBook Air. The Sony VAIO SVE14113ELW falls into the non-ultrathin category, it is 1.33' thick (~0.55' thicker than the ultrathin category HP ENVY Ultrabook and Sleekbook).
Overall / Feature Significance
The Sony VAIO SVE14113ELW is part of Sony's VAIO E Series consumer-grade laptop line. The VAIO E Series gives consumers many options to choose from like display sizes ranging from 11.6' to 17.3', processors spanning Intel Pentium to 3rd Generation i7 and an assortment of enclosure colors.
The particular version of VAIO E Series laptop in this teardown analysis features an Intel Core i3-2370M processor, 14.0" 1366x768 display, 2GB of SO-DIMM DDR3, 320GB SATA HDD, and a 44Wh lithium-ion battery. It also features a LED backlit keyboard and 1.3MP webcam.
The Sony VAIO SVE14113ELW is a typical laptop design having a motherboard and a few peripheral/interface PCBs connected through various cables. Weighing in at 5.29lbs, it is designed in the conventional laptop fashion compared to the newer light and thin Ultrathins. Because of the relatively large design envelope (comparing to Ultrathins), it does not require sophisticate thoughts on components placement. Mechanically, it employs painted molded plastic for the whole enclosure to provide an aesthetic look while helping to keep the cost low.
Generic PC for home use - mass market appeal
This product appears to have been released in mid 2012.
Pricing and Availability
Currently sold on Sony Mexico website for 9,999 MXN (~$770 USD), Nov 2012. Other online retailers offering this specific model for as low as 7,599 MXN (~$590 USD).
Mexico / South America
Availability assumed to be primarily Mexico per label. Also found on Sony Colombia and Sony Chile websites.
1,000,000 Total Units
2 Total Years
For the purposes of this teardown analysis, we have assumed an Annual Production Volume of 1000000 units and a Product Lifetime Volume of 2 year(s).
Teardown volume and 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.
Sony Mobile PC has held a steady ranking of #9 in the global Mobile PC market throughout 2012, and has been consistent in this ranking for the last couple of years. With an estimated 2.0M PC units shipped in the most recent Q3 2012, this puts their Mobile PC division at 3.7% market share and on par with where they have been.
No matter what the device is - you can tell a lot about what makes the BOM cost what it does by looking at the following top 10 cost drivers, and each of them is typical for a PC design of any kind. The CPU drives the costs primarily - and in this case the Intel cost is estimated using our IC price evaluator tool which, at 83 points of margin produces an ~$102.74 price to Sony.
Total BOM: $365.85
Top Cost Drivers below: $280.28
% of Total BOM 77%
Main Cost Drivers below
Intel FF8062700996006SR0DP CPU - Intel Core i3-2370M, Dual Core, 2.4GHz, 3MB Cache, 32nm- (Qty: 1)
Western Digital WD3200BPVT Hard Drive - 320GB, 2.5', SATA 3Gb/s, 5400RPM, 8MB Buffer- (Qty: 1)
Chimei Innolux N140BGE-L42 Display Module - 14.0' Diagonal, 262K Color TFT, 1366 x 768 Pixels, 200cd/m^2 Brightness, 309.4mm x 173.95mm Active Area, LED Backlight- (Qty: 1)
Sanyo VGP-BPS26 Battery Pack - Li-Ion, 6-Cell, 10.8V, 4000mAh, 44Wh- (Qty: 1)
Intel BD82HM76SLJ8E Platform Controller Hub - HM76 Express Chipset, Support Dual Display, 8 PCI-E 2.0 Lanes, USB 3.0, 12 USB Ports, 6 SATA Ports, 4.1W- (Qty: 1)
Panasonic UJ8C0 CD/DVD RW Drive - Slim Internal Type, Tray Load, SATA- (Qty: 1)
Hannstar 6-Layer - FR4, Lead-Free, Halogen-Free- (Qty: 2)
Samsung Semiconductor M471B5773DH0-CK0 SO-DIMM DDR3-1600 - 2GB, 1.5V- (Qty: 1)
Keyboard Assembly - Injection Molded Plastic Keys, Mounted on Metal Backing Plate, LED Backlit, w/ Interconnect Flex PCB- (Qty: 1)
Delta Electronics VGP-AC19V37 AC Adapter - 19.5V, 3.9A, 76W, w/ 6ft Cord- (Qty: 1)
Not Included in 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.
We do provide an Excel tab 'Overall Costs' where a user can enter their known pre and post production costs to build a per unit cost reflective of theirs actual expenditures.
According to IHS iSuppli's Global OEM Manufacturing & Design (GOMDA™) Q2 2012 - Compute Platforms report:
Approximately 88% of Sony's Mobile PC business is outsourced for manufacturing. They have 3 major partners, Hon Hai, Quanta and Wistron, which manufacture over 99% of the outsourced products.
Country of Origin
For the purposes of this analysis, we are assuming the following country(ies) of origin for each level of assembly, based on a combination of 'Made In' markings, and/or assumptions based on our knowledge of such equipment.
Box Contents - China
BT / WLAN Half Mini PCIe Module - China
Display Module - China
Misc Interface PCBs - China
Motherboard - China
Other - Enclosures / Final Assembly - 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, HDD, CD/DVD Drive), 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.
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 pin count of the device. This calculation is affected by country or region of origin as well.
Component counts by assembly and the number of assembly are indicators of design complexity and efficiency.
Component Qty: 1507 - Motherboard
Component Qty: 256 - Other - Enclosures / Final Assembly
Component Qty: 2 - Storage Device
Component Qty: 1 - Display Module
Component Qty: 24 - Box Contents
Component Qty: 108 - BT / WLAN Half Mini PCIe Module
Component Qty: 40 - Webcam Module PCB
Component Qty: 42 - Misc Interface PCBs
Component Qty: 1980 - Grand Total
At a component count of 1980 components (grand total with box contents), this design is inline with recent notebooks, such as those from HP and Apple.
The core of the Sony VAIO SVE14113ELW is the Intel 2nd Generation i3-2370M Dual-Core processor which integrates Intel HD Graphics 3000. The design is a typical Intel one with a CPU and a Platform Controller Hub which Intel adopts to do away with the traditional Northbridge and Southbridge architecture. The rest of the design is pretty common to other Intel-based device.
The storage devices are a conventional 320GB HDD from Western Digital and a Panasonic CD/DVD combo drive. The display is a 14.0", 1366x768 panel supplied by Chimei Innolux. The unit also includes a Half Mini PCIe Bluetooth/WLAN combo card featuring Qualcomm Atheros WLAN IC (AR9485-BL3A) and Qualcomm Atheros Bluetooth IC (AR3012-AL3D) and 1.3MP webcam module.