Low-end, entry-level tri-band GSM only (not GPRS enabled) candybar phone with only basic features, monochrome screen, and modest memory content.
Although we have never felt that most of the Siemens line that we have analyzed were anything 'fancy' this clearly fits in the range of entry-level phone, regardless of relative standards. Siemens says "It is a 'clutter free' phone tailored to the needs of all those individuals who mainly want to talk and text…but nothing else!
This phone is clearly focused at entry-level and expanding global marketplaces as it's target - where the bells and whistles are less critical to product acceptance and basic subscriber market expansion is the goal.
Although it appeared at first as though the target market for this phone was purely 'emerging markets' (i.e. third world, developing countries with low handset subscriber base / penetration), based on the odd collection of countries in which the A70 is available, it appears that it is a mix of 'cost-conscious' consumers (and possibly pay as you go plans which typically offer the lowest-end hardware), and emerging markets.
Per Siemens' press release Feb 24, 2005, this phone was released in Q1 of 2005.
Availability (Per Siemens Website)
An odd assortment of countries from 1st world and on (the following list is not exhaustive, but designed to give an idea of many of the countries where this model is available) Europe - Austria, Czech Republic, Finland, Greece, Poland, Portugal, Slovenia, Spain, Ukraine- South / Central America - Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru. In Asia it appears that only the Siemens Thailand site features the phone. It is likely sold in smaller 3rd world markets as well.
We are using the estimate of 3M units for lifetime production. As a reminder, volume production assumptions primarily affect our cost analysis in terms of amortized NRE and tooling costs, especially for custom components specific to the model being analyzed (mechanical components especially).
Market Shares / Sector Performance
We estimate that Siemens had an average market share in 2004 (based on global unit volumes), of nearly 7% (or about 50M units) of total unit sales. However, that share seems to have decreased to 4.8% in the second quarter of 2005 (about 18.3M units shipped in Q1 and Q2 we estimate). In fact Siemens market share has been falling for nearly 2 years, based on iSuppli estimates. Furthermore, in order to better estimate our market volumes for this particular unit, it is important to note that GPRS phones represent about half of all unit sales for handsets in 2004-05 - non GPRS enabled (GSM only) phones represent a small (9% estimated in 2005) of total worldwide mobile handset shipments which are estimated at 780M units for 2005.
Function / Performance
Performance testing was not performed on the Nokia 1110.
Main Cost Drivers Representing approximately 55% of total materials costs
DBB/ABB - Infineon PMB7860 Single-Chip
Display (1.6 In Monochrome 101 x 64)
Memory (64Mb Flash)
Battery (3.7, 650mAh)
RF Transceiver - Tri-band
PCB 6 Layer
Materials and Manufacturing*
* - The total materials and manufacturing costs reported in this analysis reflect only the direct materials cost (from component vendors and assorted EMS providers), manufacturing and test. Not included in this analysis are costs above and beyond the manufacture of the core device itself - cost of shipping, logistics, marketing and other channel costs including not only 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 any literature, packaging, and accessories supplied with the phone itself.
Country of Origin / EMS provider
The Siemens A70 is produced in Hungary per labels both on the box and inside the unit itself. We are furthermore assuming that with the exception of the power supply (made in China) that the rest of production (PCBA assembly and the manufacturing of custom mechanicals) occurs locally in Hungary or elsewhere in low cost regions of Eastern Europe.
Local labor rate assumptions are stated in the overview of this analysis. Although the rates used in Hungary are higher than those used in China, they are far more competitive than other Western Europe locations. In most phone analyses, direct hand assembly times and direct hand assembly costs are typically modest, and are usually outstripped by the cost of automatic insertion assembly lines which are very capital equipment intensive.
Design for Manufacturing / Complexity
We have seen a lot of Siemens phones, and if you have seen a number of Siemens designs, you know that most if not all Siemens look unmistakably alike in terms of PCB layout, hardware, shielding choices, and of course, core chipset choices, etc. This one is no different. Siemens phones are relatively simple, and direct forward from a manufacturing time perspective without a lot of superfluous mechanical components, etc.
The A70 features a total of 349 components in total, of which 246 are passive components, and 50 are mechnical. These are two critical component categories as each tend to drive the overall manufacturing cost - one from an auto-insertion point of view, and the other from a hand-assembly point-of-view. Overall - at 349 components, the Siemens A70 is completely inline with other basic Siemens phones in terms of overall component count and complexity and only two other phones in our history have lower component counts - the Alcatel One Touch (324), the Nokia 3510i (290), and the Motorola C350 (257).
Here is a summary of the major components used in the Siemens A70 design:
- Baseband Processor - Infineon - PMB7860 - Similar to PMB7850 used in A65, A55, C60
- Flash - AMD - Am29LV640MU (Siemens Part# DS42701A)
- PSRAM - ST Microelectronics - M69AW024BL60ZB8
- PAM - Renesas - PF08143B - Same Chip used in CX65
- Power Management - Dialog Semiconductor - D0950EB - Similar to D0950CC Used in A56, S55
- RF Transceiver - Unknown Manufacturer and Part#
- FEM - Renesas - HWXQ521
- 1.6' Diagonal 101 x 64 Pixel B&W Amber Back Lit