IHS Insight Perspective
The Nexus 10 is the second tablet in Google's Nexus series. This series runs the Android operating system and is build by Google's OEM partners - Samsung in this case. This device offers a 10.1' display and runs on Samsung's Exynos 5250 Processor.
The most notible feature of the Samsung Nexus 10 is its display. This device features a 10.1' display with 2560x1600 pixel resolution - the highest resolution for tablets in 2012.
In terms of design, the Nexus 10 follows suite in the latest tablet design trends. Physically, it is 263mm x 177mm x 9mm and weighs about 600g. The enclosure is complete with rubberized coating, a major cost contributor to the enclosure but a necessary one, giving the Nexus 10 a premium quality feel.
The heart, and brain, of the Nexus 10's electronic design is the Samsung Exynos 5250. This system-on-chip offers a dual-core 1.7GHz Cortex A15 CPU and a quad-core ARM Mali T604 GPU.
Tablets have become a popular consumer item and most designs, such as this are aimed at the mass market. Furthermore, the smaller size is typically an attempt to offer a lower entry point for consumers, though many may simply find the smaller format more portable and therefore pragmatic.
November 2012 per press release
Pricing and Availability
Price found on Google Play.
7,500,000 Total Units
1 Total Years
For the purposes of this teardown analysis, we have assumed an Annual Production Volume of 7500000 units and a Product Lifetime Volume of 1 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.
• Tablets represent one of the strongest growth categories in consumer electronics through 2016.
• Overall tablet sales increased 253% year-over-year (YoY) in 2011 and are expected to increase 85% in 2012.
• Media tablet growth has been more dramatic, increasing 277.3% YoY in 2011. Projected 2012 media tablet YoY growth is 86.9%.
• PC tablet growth in the early years of the forecast has been more modest, increasing 26% YoY in 2011. Growth in 2012, aided by the introduction of Windows 8 and new Ultra light tablet offerings, is expected to be stronger at 33% YoY.
• PC tablet growth is expected to accelerate in 2013 and beyond, as more versatile, affordable models enter the market and touch becomes more prevalent.
Though our numbers might lead some to conclude that Samsung stands to make over 50 points of margin on this device, there are more cost pieces to this puzzle. Because our BOM costs do not include non-material costs (such as software and development costs) - once these additional costs are factored - what might appear to produce a large margin for Apple and Samsung, may, in fact, not. As recent court document surfacing from the patent battles between Apple and Samsung show that Apple's gross margins for the iPad are not nearly as great as those for the iPhone. In fact according to a recent report citing the case: 'Between October 2010 and the end of March 2012, Apple had gross margins of 23 to 32 percent on its U.S.'. Based on our BOM estimates and expected retail prices - Samsung stands to make similar margins on this product.
Total BOM: $289.12
Top Cost Drivers below: $232.11
% of Total BOM 80%
Main Cost Drivers below
Samsung LTN101DL02-801 Display Module - 10.055' PLS-Backlit LCD, 2560 x 1600 Pixels, WQXGA, 16M Colors, LED Backlight- (Qty: 1)
Touchscreen / Display Window - 10.055', Capacitive, Glass Overlay, Painted, Printed, w/ Integral Flex PCB- (Qty: 1)
Samsung Semiconductor K3QF2F200M-XGCE SDRAM - Mobile DDR3, 2GB (4 x 4Gb), PoP, Low Power- (Qty: 1)
Samsung SDI SP3196A8H Battery Pack - Li-Ion Polymer, 2-Cell, 3.75V, 9000mAh, w/ Integrated 6 Discrete Insulated Wires & 6-Position Pin Socket Connector- (Qty: 1)
Samsung Semiconductor KLMAG2GE2A-A002 Flash - eMMC NAND, 16GB- (Qty: 1)
Samsung Semiconductor Exynos 5 Dual Apps Processor - Dual-Core Cortex A15, 1.7GHz, 32nm, PoP- (Qty: 1)
Primary Camera Module - 5MP, BSI CMOS, 1/4' Format, Auto Focus Lens- (Qty: 1)
Internal Mounting Bracket - Die-Cast Magnesium Alloy, Insert Molded Polyphthalamide Perimeter, Painted- (Qty: 1)
Daeduck Electronics 10-Layer - FR4/RCF HDI, 3+4+3, Lead-Free- (Qty: 1)
Secondary Camera Module - 1.9MP, BSI CMOS, 1/6' Format, Fixed Lens- (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.
Per IHS intelligence - Samsung produce 100% of tablet product in-house. This is not unusual and the vast majority of smart phones produced by Samsung are also manufactured in house. Furthermore, per labeling, this product is made in Korea. In the past, Samsung's tablets and other mobile devices were manufactured at Samsungs manufacturing facilities in South Korea. This is no longer the case as we are seeing more and more of these devices manufactured by Samsung in China.
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 - Korea, South
Camera Assembly - Korea, South
Display / Touchscreen - Korea, South
Main PCB - Korea, South
Misc PCB Assemblies - Korea, South
Other - Enclosures / Final Assembly - Korea, South
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 Korea, South), 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 pincount 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: 767 - Main PCB
Component Qty: 139 - Other - Enclosures / Final Assembly
Component Qty: 64 - Camera Assembly
Component Qty: 46 - Misc PCB Assemblies
Component Qty: 16 - Box Contents
Component Qty: 1043 - Grand Total