Mobile Devices

Cisco 7962G IP Phone Teardown

09 September 2008
The following is an overview of a teardown analysis conducted by IHS Benchmarking.

Overview / Main Features

The Cisco 7962G is a mid-level IP phone model offering from Cisco's premier Unified IP Phone 7900 series. The phone features a large 5 inch 4-bit grayscale graphical LCD screen with 320 x 222 pixel resolution. Typical of the 7900 series line, the 7962G has a full duplex speakerphone with echo cancellation. Further, the 7962G offers a "wideband audio enhancement on the physical handset unit. This wideband enhancement works in conjunction with the G.722 codec and Cisco Unified Communications Manager 4.1 to produce richer audio experience during calls. Overall, the 7962G shares the same form factor / enclosure design as the 794x and 797x lines.

Other features of the 7962G include 2-port Ethernet solution for LAN connectivity along with a co-located PC, a headset port for hands-free use, volume control toggle buttons, dedicated 'messages', 'directory', 'service' and 'settings' keys with 4 soft keys along the bottom of the screen as well as 6 illuminated line buttons. Corporate directory integrates with LDAP version 3 standard. The phone works as part of an integrated solution from Cisco - ""Cisco Unified Communication Solution" and is highly configurable and easily administered via LAN.

Cisco 7962G IP Phone Main ImageCisco 7962G IP Phone Main Image

Target Market

Enterprise, government agency, and institutional workspaces upgrading to or leveraging existing IP based telephony infrastructure.


Release date / press releases not found.

Pricing and Availability
Pricing - Keeping in mind that this phone is unlikely to be purchased alone in a retail environment, but rather is sold more at an enterprise level as part of a larger package, it is difficult to say what a typical Cisco sales price may be in such a package for this unit. However, various units were found from e-tailers at the time of writing (Sept. 2008) for prices between $330 and $540.


- Global availability (assumed)

Volume Estimations

For the purposes of this teardown analysis, we have assumed a lifetime production volume of 1.2M 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 increment by an order of magnitude. Minor changes in volume (say 1 million vs. 2) rarely have a large net effect on our final analysis.

Cisco 7962G IP Phone - Main PCB TopCisco 7962G IP Phone - Main PCB Top

Market / Sector Performance

IP Telephony is not an ongoing practice area for iSuppli, however per our own topical research in the area of VoIP (""VoIP Market: Maturity Approaches but New Opportunities Arise" - Q3 2007), we expect the VoIP market to be dominated by the enterprise segment (which accounted for 45% of the VoIP equipment revenue in 2007 and is expected to grow to 50% of the market for VoIP equipment.

Furthermore, as the installed base of PBX lines approaches 50% IP in 2009, iSuppli expects the rate of growth of IP lines to slow from its estimated 2007 rate of 17% to less than 10% growth by 2010.

iSuppli further estimates, that in 2007, Cisco had 17% revenue market share of the OEM Enterprise VoIP factory revenue behind Avaya at 22% and Nortel at 24%. However, for ""all IP" PBX flavors of enterprise IP telephony networks, which makes up approximately 20% of the market, Cisco is the clear dominant supplier.

Cisco 7962G IP Phone Cost AnalysisCisco 7962G IP Phone Cost Analysis

Cost Notes Main Cost Drivers Representing ~67% of total materials cost

  • Nan Ya Plastics - Display Module Value Line Item - 5.0' Diagonal, Monochrome, 320 x 222 Pixels, 4-bit Grayscale
  • Texas Instruments (Cisco Systems) - F751916BZDW - ASIC - IP Phone
  • Zhejiang Pan An Circuit - 6-Layer - FR4
  • Spansion - S29GL128P11TFI02 - Flash - NOR, 128Mb, 3V, 110ns, 90nm
  • Broadcom - BCM5912KQM - Ethernet Transceiver - Dual
  • Samsung Semiconductor - K4H561638H-UCB3 - SDRAM - 256Mb (16M x 16), 166MHz, 2.5V
  • Enclosure, Main, Rear - Injection Molded ABS
  • Front Faceplate - Injection Molded ABS, Silver Painted, Silkscreened
  • Enclosure, Main, Front - Injection Molded ABS
  • Loudspeaker Assembly - 1.5' Dia. Loudspeaker, 4 Ohm, 6W, w/ Insulated Wires & 2-Pin Connector
  • Pulse Engineering - H2075NL - Ethernet Magnetics Module - 10/100 Base-TX, VoIP, Dual-Port
  • Rear Foot Stand - Injection Molded ABS
  • Keypad - Injection Molded Silicone Rubber, w/ Carbon Contact Pads
  • Phico Computer - 2-Layer - FR4, Lead-Free
  • Button Insert - Injection Molded Plastic, 2-Shot (Qty:4)
  • Button Insert - Injection Molded Plastic, 2-Shot (Qty:4)
  • Button Insert - Injection Molded Plastic, 2-Shot (Qty:4)
  • MWM Acoustics - Loudspeaker - Receiver, Dynamic, w/ 3 Integral Insulated Wires

Materials & Manufacturing Costs $72.50

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.

Manufacturing Notes

OEM/ODM/EMS Relationships / Manufacturing

All the Cisco IP phones analyzed so far are labeled as made in China. We are assuming that this comes from an EMS provider in China that Cisco outsources to, possibly such as Foxconn with whom Cisco have relationships for other equipment manufacturing.

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 and Ethernet connectors), 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 pin-count of the device. This calculation is affected by country or region of origin as well.

Cisco 7962G IP Phone - Enclosure DisassemblyCisco 7962G IP Phone - Enclosure Disassembly

Design for Manufacturing / Device Complexity

The Cisco 7962G has a component count of 932, of which 156 are mechanical in nature.

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.

Design Notes

Here is a summary of the major components used in the Cisco 7962G design:

Main PCB


  • Processor - Texas Instruments (Cisco Systems) - F751916BZDW


  • SDRAM - Samsung Semiconductor - K4H561638H-UCB3
  • Flash - Spansion - S29GL128P11TFI02


  • Ethernet Transceiver - Broadcom - BCM5912KQM


Display Module

  • Nan Ya Plastics


Cisco 7962G IP Phone - Box ContentsCisco 7962G IP Phone - Box Contents

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