Thursday, September 26, 2013

iPhone 5s $199 Manufacturing Cost (BOM)

The article below discusses "Apple’s Inc.’s new flagship product—the iPhone 5s—features some cutting-edge components that represent pioneering achievements for the smartphone market while maintaining a nearly identical cost compared to the iPhone 5.
The low-end version of the iPhone 5s with 16 gigabytes (GB) of NAND flash memory has a bill of materials (BOM) of $191"

" iPhone 5s to LPDDR3, ... Apple probably used this high-speed, cutting-edge memory—as opposed to the LPDDR2 employed in the original iPhone 5 and 5c—to support the fast processing speeds of the A7.
Such performance comes at a price. The 1 GB of LPDDR3 costs $11.00, up from $9.50 for the same quantity of LPDDR2 in the 5c."

Price of DRAM and NAND memory will have a strong impact on Apple profit margin in the future. Currently on the low end model memory cost is about 10% of iPhone 5s cost, while it is 20% of 64GB model.

Looking at NAND memory price drop in the past, for example, the 16Gbytes of NAND flash in the iPhone 5 is estimated to cost $9.40, down dramatically from $19.20, based on pricing in October 2011. Any  DRAM or NAND price drop will help Apple bottom line


Ron
Insightful, timely, and accurate semiconductor consulting.
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September 25, 2013 
ANDREW RASSWEILER
Apple’s Inc.’s new flagship product—the iPhone 5s—features some cutting-edge components that represent pioneering achievements for the smartphone market while maintaining a nearly identical cost compared to the iPhone 5.
The low-end version of the iPhone 5s with 16 gigabytes (GB) of NAND flash memory has a bill of materials (BOM) of $191, according to the preliminary results of a physical dissection of the device conducted by the Teardown Analysis Service at IHS Inc. (NYSE: IHS), a leading global source of critical information and insight.  When the $8 manufacturing expense is added in, the cost rises to $199. The compares to a $197 total cost for the original iPhone 5, based on the completed IHS teardown analysis from one year ago.
“The iPhone 5s features a 64-bit apps processor, low-power Double Data Rate 3 (LPDDR3) DRAM, and a novel fingerprint sensor—features that have never before been seen in a smartphone,” said Andrew Rassweiler, senior director, cost benchmarking services for IHS. “In addition, it is very interesting to see that Apple continues to collaborate closely with suppliers to develop unique radio frequency (RF) solutions that give Apple a competitive edge.”
The table below presents the preliminary BOM and manufacturing cost based on a physical dissection of the iPhone 5s conducted by the IHS Teardown Analysis Service. Note that the teardown assessment is preliminary in nature, accounts only for hardware and manufacturing costs and does not include other expenses such as software, licensing, royalties or other expenditures. 
iPhone turns 64Although other smartphones have included 64-bit graphics processors, the 5s is the first model with a 64-bit applications processor, an innovation that has major implications for the iPhone and for Apple’s other product lines.
“The move to the 64-bit apps processor is largely driven by the need for greater computational power to ensure that the smartphone’s fingerprint sensor works quickly and seamlessly,” said Wayne Lam, senior analyst for wireless communications at IHS. “The processor also boosts the performance of the iPhone 5s’s camera, allowing 120 frame-per-second (FPS) video and 10 FPS photo capture. This design change will likely set the stage for 64-bit processors to be used in upcoming Apple products, including new models of the iPad, the Apple TV and even MacBook Air PCs.”
The 64-bit processor is part of the Apple-designed A7 apps processor, based on a core from ARM Holdings plc. The new 64-bit processor core is called “Cyclone,” as opposed to the 32-bit version used in the iPhone 5 and 5c, known as “Swift.”
Despite the well-publicized feud between the companies, Samsung is the manufacturer of Apple’s A7. This likely is because Samsung has a license to ARM's 64-bit core.
The A7 used in the iPhone 5s costs $19—significantly higher than the A6 used in the original iPhone 5 and 5c, which currently carries a cost of $13.
Precious memories In parallel with the upgrade to 64-bit computing, Apple has updated the memory of iPhone 5s to LPDDR3, marking the first time that the IHS Teardown Analysis Service has identified this advanced type of DRAM in an electronic product. Apple probably used this high-speed, cutting-edge memory—as opposed to the LPDDR2 employed in the original iPhone 5 and 5c—to support the fast processing speeds of the A7.
Such performance comes at a price. The 1 GB of LPDDR3 costs $11.00, up from $9.50 for the same quantity of LPDDR2 in the 5c.
Printing moneyThe addition of the fingerprint scanner also represents an increased hardware cost for the 5s. The user-interface segment of the 5s, which includes the fingerprint scanner, costs $15. This compares to just $8 for the user interface for the 5c, which has no fingerprint scanner.
Battle of the bandsAnother major difference between the iPhone 5s and the original iPhone 5 lies in the RF transceiver, which has been updated to support more 4G Long Term Evolution (LTE) bands. Like the iPhone 5c, the 5s uses Qualcomm’s WTR1605L RF Transceiver, which supports up to seven simultaneous LTE connections during operations. The original iPhone 5 utilizes the older RTR8600L RF transceiver, also from Qualcomm, which supported only five active LTE bands.
Design stasisOne of the biggest-ticket items in the iPhone 5s gets no change: the display and touch-screen subsystem. Maintaining the same specification and the same suppliers for the panels as the iPhone 5 has helped Apple hold the line on its hardware costs for the 5s. Japan Display Inc., LG Display and Sharp have been the main display suppliers for the iPhone 5 for more than a year, allowing Apple to provide them the opportunity to enhance their manufacturing yields and efficiencies. NAND flash has also not made any significant advances with the 5s, and the amount of the memory content in the phone remains the same.
The table below presents major component suppliers for the iPhone 5s.
 
Higher prices for higher-end phonesThe combined BOM and manufacturing cost for the midrange iPhone 5s with 32 GB of NAND flash is estimated at $208. The 64-GB model’s cost totals $218.

Friday, September 20, 2013

iPhone 5s Teardown


Teardown of iPhone 5s by iFixit is below. Key IC in the latest Apple smart phone are:
  • Murata 339S0205 Wi-Fi module (based on the Broadcom BCM4334, according to Chipworks)
  • SK Hynix H2JTDG8UD3MBR 128 Gb (16 GB) NAND Flash
  • Qualcomm PM8018 RF power management IC
  • TriQuint TQM6M6224
  • Apple 338S1216
  • Broadcom BCM5976 touchscreen controller
  • Texas Instruments 37C64G1
  • Skyworks 77810
  • Skyworks 77355
  • Avago A790720, A7900
  • Apple 338S120L
  • Apple A7 APL0698 SoC (based on this MacRumors post, the markings F8164A1PD indicate the RAM is likely 1GB), was fabbed in July.
  • Qualcomm MDM9615M LTE Modem,  WTR1605L LTE/HSPA+/CDMA2K/TDSCDMA/EDGE/GPS transceiver.

  • Along with the fingerprint sensor, the A7 is a major enticement for consumers to pick the 5s over the 5c.
  • The A7 is advertised as providing twice the performance of the 5 (and 5c)'s A6 processor.
    • The switch to the A7 marks the first use of a 64-bit processor in a smartphone. Based on AnandTech's review, it seems that the bulk of the A7's performance gains do not come from any advantages inherent to a 64-bit architecture, but rather from the switch from the outdated ARMv7 instruction set to the newly-designed ARMv8.
    • The modern ARMv8 instruction set was designed for a 64-bit architecture. It does away with the legacy support of the last 20 years, which increases efficiency, improving performance without sacrificing battery life.
  •  

 iPhone 5s Teardown


    Teardown

    Teardown

    Teardowns provide a look inside a device and should not be used as disassembly instructions.
    Featured Guide

    Featured Guide

    This guide has been found to be exceptionally cool by the iFixit staff.
    One…Three…G…Three…G again…S!…Four…Four again!…And another S!… Five!…S!...Five?!…C!
    Thankfully Apple is in the technology business, not the education business. We can only imagine how jumbled pre-school students' ABCs and 123s would be if they were taught in Cupertino.
    Crazy nomenclature aside, we were anxious to bite into this latest piece of phone fruit. So anxious, in fact, that we sent one of our own to the land down-under to get one.
    Join us as we dissect the latest iPhone; otherwise:
    Instagram for kooky pictures, Twitter for quirky quips, Facebook if you wanna be friends.
    Read More

    Add NoteEditStep 1 — iPhone 5s Teardown 

    • An iPhone release means a trip to the future—the iFixit teardown crew has traveled 17 hours forward in time to get the iPhone 5s early.
    • We want to send out a big thanks to our good friends at MacFixit Australia for letting us use their office in Melbourne for the teardown. They stock Mac and iPhone upgrades/accessories, and also carry ouriFixit toolkits.
      • To cover all our bases, we confirmed with our best linguists that the 5s upside-down is still the 5s.
    • Speaking of toolkits, for this teardown, we'll be using iFixit's brand-new Pro Tech Screwdriver Set.

    1 Add NoteEditStep 2 

    • As we ready ourselves to delve into the delightful innards of the 5s, let's check out some of its tech specs:
      • Apple A7 processor with 64-bit architecture
      • M7 motion co-processor
      • 16, 32, or 64 GB Storage
      • 4-inch retina display with 326 ppi
      • 8 MP iSight camera (with larger 1.5ยต pixels) and a 1.2MP FaceTime camera.
      • Fingerprint identity sensor built into the home button
      • .........

      Image #1

      1 Add NoteEditStep 12 

      • Looks like we found a Murata 339S0205 Wi-Fi module (based on the Broadcom BCM4334, according to Chipworks).
      • Again comparing our 16 and 64 GB models:
        • It seems that the Murata IC is the same between both iPhone 5s'.
        • The design of both logic boards may be identical, but slight differences in markings (e.g. 94V-0 on the rightmost, nonexistent on the leftmost) may indicate that Apple is manufacturing the 5s logic boards at multiple locations.
      Image #1

      1 Add NoteEditStep 13 

      • Open ses-EMI! Behold, IC treasures identified:
        • SK Hynix H2JTDG8UD3MBR 128 Gb (16 GB) NAND Flash
        • Qualcomm PM8018 RF power management IC
        • TriQuint TQM6M6224
        • Apple 338S1216
        • Broadcom BCM5976 touchscreen controller
        • Texas Instruments 37C64G1
        • Skyworks 77810
      Image #2

      5 Add NoteEditStep 14 

      • More ICs!
        • Skyworks 77355
        • Avago A790720
        • Avago A7900
        • Apple 338S120L
      • A super-awesome thanks to the Chipworks team for helping us decode and discern these delightful devices!
      Image #1

      3 Add NoteEditStep 15 

      • Turning our attention to the backside of the logic board:
        • Apple A7 APL0698 SoC (based on thisMacRumors post, the markings F8164A1PD indicate the RAM is likely 1GB)
        • Qualcomm MDM9615M LTE Modem
        • Qualcomm WTR1605LLTE/HSPA+/CDMA2K/TDSCDMA/EDGE/GPS transceiver.
      • As we search for a much-anticipated M7 coprocessor, we begin to wonder if it actually is a separate IC, or if it is additional functionality built into the A7.
        • Maybe the "M" stands for "magical," the M7 is invisible, and Apple does use pixie dust to hold the device together. Or perhaps the "M" stands for "marketing"…
      • Our A7 was fabbed in July.
      Image #2

      3 Add NoteEditStep 16 

      • It's time to investigate the new kid on the block, and it's fly like an A7. Along with the fingerprint sensor, the A7 is a major enticement for consumers to pick the 5s over the 5c.
      • The A7 is advertised as providing twice the performance of the 5 (and 5c)'s A6 processor.
        • The switch to the A7 marks the first use of a 64-bit processor in a smartphone. Based on AnandTech's review, it seems that the bulk of the A7's performance gains do not come from any advantages inherent to a 64-bit architecture, but rather from the switch from the outdated ARMv7 instruction set to the newly-designed ARMv8.
        • The modern ARMv8 instruction set was designed for a 64-bit architecture. It does away with the legacy support of the last 20 years, which increases efficiency, improving performance without sacrificing battery life.
      • We'll have to wait until we get inside the chip to find out who manufactured it.