The Nokia 3110 Classic is a mid-range Tri-band GSM/GPRS/EDGE candybar phone. Main features include a 1.3MP camera w/ 8x zoom, a 262K Color TFT LCD display, Bluetooth connectivity, MP3 player, 3GPP video streaming, FM radio & IrDA connectivity.
The Nokia 3110 Classic is another mid-range phone that provides more than just connectivity and yet has a relatively low price tag. As per Nokia's press release, "…the new Nokia 3110 classic, a well-balanced mobile phone for people who appreciate staying connected and value for money. It comes in a simple candybar design that seems to tell others that it is built for usability and reliability instead of beauty or style.
Per Nokia's press release, ""Nokia 3110 Classic…for people a well-balanced mobile phone for people who appreciate staying connected and value for money".
Available in Q2 2007 per Nokia Press Release
Pricing and Availability
Per Nokia Press Release: Estimated retail price of 150 euros before subsidies or taxes.
Based on Nokia's market share, and our estimates of market volume shipments by manufacturers and market segments (see iSuppli Design Forecast Tool (DFT) data below), we are assuming a total production volume for this model of 5.4M units over a 2-year lifespan for the purpose of this analysis.
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.
ISuppli's Design Forecast Tool (DFT) and Market Shares
Per iSuppli research we estimate a total of 137M EDGE Tri-Band phones in 2007 global market. ISuppli lifetime production volume estimates are based on the assumption of 2-year life span and the company's current market position in this segment.
Display Module - 1.8" 256K Color TFT
DBB - Texas Instruments - NMP #4377223
MCP - ST Microelectronics - M39L0R8070 - NOR Flash 256Mb, Mobile SDRAM 128Mb
VGA Camera Module - Manufacturer Unknown
Battery - Nokia - BL-5C - Li-Ion, 3.7V, 1020mAh
Main PCB - UniMicron - 8-Layer - FR4/RCF HDI, 2+4+2, Gold Metalization & Conductive Carbon
RF Transceiver - ST Microelectronics - NMP #4380189
Video / Image Processor - ST Microelectronics - STV0984
Bluetooth IC - CSR - BC41B143A - Single Chip Bluetooth Solution, V2.0+EDR
ABB / Power Management - ST Microelectronics - NMP #4396177
Charger - Nokia - AC-3X
PAM - RF Micro Devices - NMP #4355929
Materials and Manufacturing ~$70.1
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 and 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 / EMS provider
This Nokia 3110 Classic is also labeled ""Made by Nokia". In this case, we have assumed Hungary to be the final assembly point as Hungary seems to be a popular manufacturing site for Nokia especially for low-mid range phones. Indeed, we have seen quite a few Nokia phones that are labeled ""Made in Hungary", including the competing 6070. It is assumed furthermore that the plastics and other mechanicals, as well as the assembly of the PCBA took place in Hungary to minimize costs.
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 modules or camera modules), 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
Nokias, as a general rule, have fewer discrete mechanical and electronic components, for the same amount of functionality than their competitors. Furthermore, Nokia have a very modular approach to designs which make them simpler to manufacture, improving production cycle times and ease of re-work. The Nokia 3110 Classic has a total component count of 534 components, of which 99 is mechanical, which is the second lowest among the 4 competing phones (the Nokia 6070 has the lowest components counts since it only has very basic functionality). Mechanically it is still inline with other mid-range candybar phones. However, the mechanical count does seem a bit high for a Nokia.
The number of mechanical components usually is a direct driver of hand-assembly costs, whereas the electronic component count (and I/O count, density, etc.) are relative metrics for the more automated portion (namely SMT assembly) of manufacturing costs.
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.
Most of the major ICs in the Nokia 3110 Classic are not first-timer in our teardown database. In fact, besides the Power Amplifier, all core ICs including the DBB, ABB, RF Transceiver, Video / Image Processor and even the CSR Bluetooth IC are identical to the Nokia 5500 we have analyzed.
Perhaps the most interesting discovery is the ST Microelectronics Memory MCP as we have never seen ST Micro's MCP in any of the Nokias we analyzed. As a matter of fact, almost all of the memory MCP we have seen in Nokia are supplied by Samsung which lead us to believe that Nokia is using ST Micro as a second source for the memory part.
As we have noted previously, this design is essentially a demonstration of Nokia's commitment to component integration, design for manufacture and reuse of standard components.
Here is a summary of the major components used in the Nokia 3110 Classic design:
DBB - Texas Instruments - NMP #4377223 - Digital Baseband Processor (RAPGSM v1.1)
Baseband - Battery / Power Management
ABB - ST Microelectronics - NMP #4396177 - Analog Baseband / Power Management (RETU v3.02)
Power Management - ST Microelectronics - NMP #4376533 - Charger IC (TAHVO v5.2)
MCP - ST Microelectronics - M39L0R8070 - 256Mb NOR Flash + 128Mb Mobile SDRAM
RF Transceiver - ST Microelectronics - NMP #4380189 - Quad-Band, GSM/GPRS/EDGE 850/900/1800/1900 (AHNE v4.01A)
PAM - RF Micro Devices - NMP #4355929 - Quad-Band, GSM/GPRS/EDGE 850/900/1800/1900
Video / Image Processor - ST Microelectronics - STV0984 - 2 MegaPixel, SMIA Compliant CMOS Sensors, 0.13um
Bluetooth - CSR - BC41B143A - BlueCore4ROM, Single Chip Bluetooth Solution, V2.0+EDR
Radio - NXP - TEA5760UK - FM Stereo Radio
Camera Module - Manufacturer Unknown
Image Sensor - Samsung - S5K4AZFA03 - 1.3MP, CMOS, 1/4' Format - 2.8um x 2.8um Pixel Size, 3.7mm x 2.95mm Active Image Area
1.8' Diagonal, 256K Color, TFT, 128x160 Pixels