Acquired Electronics360

Mobile Devices

Alcatel OT-C635 Mobile Phone Teardown

03 February 2008
The following is an overview of a teardown analysis conducted by IHS Technology Teardown Services.

Main Features / Overview

Low-end, 'budget' dual-band GSM w/GPRS VGA clamshell 'fashion' phone with minimal features 65K color CSTN screen, VGA camera and 16-tone polyphonic ringtones.

Alcatel OT-C635 Mobile Phone Main ImageAlcatel OT-C635 Mobile Phone Main Image

Target Market(s)

The Alcatel OT-C635 is a compact clamshell phone that seems aimed at the 'fashion phone' (and 'budget'!) segments of users via its aesthetic touches and low cost. Functionally however, as well as from the cost perspective, it seems that it is also likely (with different packaging) aimed at 'emerging markets' - i.e. Third World or developing country markets. It is also possible that this would serve as a giveaway or pay-as-you-go phone in other regions.


Q4 2006 best estimate based on marketing materials dates.

Pricing and Availability

This model seems predominantly available in the U.K. from multiple vendors, but will undoubtedly be available in other countries. Tesco Mobile in the U.K. is where our sample was acquired. However, other sources include Virgin Mobile (offering the device for 29.99 Pounds Sterling), on eBay in the U.K. for 40 Pounds Sterling.

Volume Estimations

Based on Alcatel'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 1 million units over a two-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 million) rarely have a large net effect on our final analysis because of this.

Alcatel OT-C635 Mobile Phone - Enclosure DisassemblyAlcatel OT-C635 Mobile Phone - Enclosure Disassembly

iSuppli's Design Forecast Tool (DFT) and Market Shares

As part of iSuppli's Design Forecast Tool (DFT), we forecast handset shipments by major design feature and manufacturer, as well as the number of design starts a manufacturer will have by feature set.

iSuppli estimates unit shipments of 408 million GPRS handsets to ship in the 2007 global market, and further estimates that 161 million units of dual-band 900/1800 phones will ship in the 2007 global market.

Function / Performance

Performance testing was not performed on the Alcatel OT-C635.

Alcatel OT-C635 Mobile Phone Cost AnalysisAlcatel OT-C635 Mobile Phone Cost Analysis

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.

Manufacturing Notes

Alcatel Relationships / Manufacturing

Alcatel has a joint venture with TCL (China) to design and manufacture handsets. Furthermore, this joint venture works with Hon Hai, Compal and other ODM service providers on the build side.

Country of Origin / EMS provider

This Alcatel OT-C635 is not labeled with respect to country of origin. It is assumed to be produced in China, despite no clear evidence stating this on labels. We are assuming that domestic Chinese manufacturing applies to the entire supply chain, except for major electronic components. We are assuming Chinese domestic manufacturing for everything from PCBA manufacturing through to box stuffing.

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 Bluetooth 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 that 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 / Complexity

Most of the phones we have seen that are either clamshell or 'slider' have higher components counts due to additional mechanical and electro-mechanical complexity owing to the 'splitting' of the design into two 'halves.'

In the case of the Alcatel OT-C635, this device has a total component count of 489 components of which 82 are mechanical. This represents the low-end of the phone range.

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.

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

Based on Alcatels joint venture relationship with TCL it seems very likely that TCL exerts a large amount of design influence within the relationship, as the application of NXP core chipset would leverage their existing relationship with NXP as a key supplier.

The following is a summary of the major components used in the Alcatel OT-C635 design:

Main PCB


  • Baseband Processor - NXP - OM6357 - Used in Samsung SGH-X600, SGH-E100
  • Power Management - NXP - PCF50603 - Used in Samsung SGH-D500
  • Audio Power Amplifier - STMicroelectronics - TS4990 IJT


  • MCP - STMicroelectronics - M36L0R7050T1ZAQ - 128Mb MLC NOR Flash, 32Mb PSRAM


  • PAM - Skyworks - SKY77324-12
  • RF Transceiver - NXP - UAA3537
  • Antenna Switch - Kyocera - LM-T615S3


  • Camera Module - Manufacturer Unknown
  • Image Sensor - Omnivision - OV7633- VGA, CMOS, 1/5-inch Format - 4.2um x 4.2um Pixel Size, 2.76mm x 2.05mm Active Image Area


  • 1.8 Inch Diagonal 128x160 Pixel 65K Color CSTN

Alcatel OT-C635 Mobile Phone - Box ContentsAlcatel OT-C635 Mobile Phone - Box Contents

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