Teardown & BOM Archives

BoM Analysis: Samsung Galaxy S23 Ultra Costs $469 to Make

Qualcomm takes the top spot in terms of cost contribution, accounting for over 34% of the model’s BoM cost.
Qualcomm and Samsung combined contribute more than 65% of the component cost in the Galaxy S23 Ultra.
Featuring Qualcomm’s custom Snapdragon chipset, Samsung’s Galaxy S23 Ultra makes a considerable leap in computing performance with its shift to TSMC’s 4nm process node.

Producing an 8GB+256GB Galaxy S23 Ultra (Sub-6GHz) variant costs Samsung around $469, according to the latest bill of materials (BoM) analysis by Counterpoint’s component research service. The major components driving cost in the smartphone are the SoC, display and camera subsystem. Due to excess inventory and supply, components related to the RF sub-system and memory were subjected to a cost decrease.

Qualcomm and Samsung’s design wins

The S23 Ultra further builds upon Qualcomm’s design, showcasing a customized version of the Snapdragon 8 Gen 2 chipset, manufactured on TSMC’s 4nm process node. Samsung has chosen Qualcomm chipsets due to enhanced cellular support, increased performance gain from both the CPU and GPU, and better battery life. The GPU also has support for raytracing and has gained a slight uplift of 39MHz clock speed.

Qualcomm’s share in the S23 Ultra has increased to an all-time high after attaining design wins for the fingerprint sensor IC, key power management ICs, audio codec, RF power amplifiers, Wi-Fi + Bluetooth, GPS and Sub-6GHz transceiver.

Samsung is the second largest beneficiary. It is an exclusive supplier of the 256GB NAND flash and the 6.8-inch AMOLED display for the S23 Ultra. The display can sustain 1750 nits of peak brightness and has a resolution of 1440 x 3088 pixels that allows the users to view pictures and videos in sharp detail. The 120Hz LTPO panel also supports adaptive refresh rate.

In the camera sub-system, the design wins are shared between Samsung (SEMCO) and Sony. Samsung provides the 200MP wide-angle camera (S5KHP2) and the 12MP selfie camera (S5K3LU), while Sony offers the 12MP Ultrawide (IMX564), 10MP Telephoto and Periscope Telephoto (IMX754) sensors.

Other component suppliers

Silicon Mitus and Maxim are the providers of power management ICs that support the regulation of power for display and other key components.

For sensing components, STM has registered design wins related to the laser autofocus module, accelerometer, gyroscope, barometer, and touch panel controller. The battery is packaged by Samsung and the cell is provided by ATL. The quick charging IC, which charges up to 45W, is sourced from NXP while the 15W wireless charging IC is from Convenient Power.

Samsung’s sourcing strategy and choice of components are enabling the brand to have a competitive edge in terms of cost efficiency.

For detailed component and pricing analyses, queries, or for acquiring this research, contact info@counterpointresearch.com

BoM Analysis: Google Pixel Watch Costs $123 to Make

The BoM cost of the LTE-capable Google Pixel Watch is estimated to be $123, which is a big leap from the previous Fitbit smartwatches.
Samsung not only provides the highly integrated main chipset but also supplies the LTE transceiver and other paired components, collectively accounting for around 20% of the total BoM cost.
BOE, which is the exclusive supplier of the smartwatch’s custom 1.2-inch-diameter OLED display, captures over 14% of the total BoM cost to rank second in terms of cost contribution.

The bill of materials (BoM) cost of the LTE-capable Google Pixel Watch is estimated to be $123, according to a BoM analysis by Counterpoint’s component research practice. As the first smartwatch built on the back of Google Wear OS and Fitbit OS, the Pixel Watch comes with a dual-processor solution. Compared to the previous Fitbit watches, which had a lightweight proprietary OS running on MCUs (microcontroller units) supplied by STMicroelectronics or Cypress, the new system is based on a high-performance processor to unleash the power of the latest Wear OS 3.5 and also features a co-processor or MCU to optimize battery life, which had been a competitive strength of Fitbit watches. The change not just introduces richer features but also results in a significant increase in the BoM cost.

Google Pixel Watch BoM Cost Structure by Function

Source: Counterpoint’s BoM Analysis Service

Note: Figures may not add up to 100% due to rounding.

Processing and Memory

Based on our BoM analysis, the Exynos 9110, manufactured at Samsung Foundry’s 10nm process node, is the main processor. It integrates a dual-core ARM Cortex-A53 CPU at 1.1GHz, a Mali-T720-based GPU and an LTE Cat.4 modem, which is paired with the audio codec and PMIC in the SIP-ePoP package. Thanks to the high integration, the layout of the 32mm-diameter PCB is not congested. However, the first-generation Pixel smartwatch would have delivered faster, smoother performance had Google built its system on the more advanced Exynos W920 platform.

The co-processor is NXP‘s MIMXRT595S. It is an Arm Cortex-M33-based MCU with DSP and GPU cores. The combined cost of the two processors and Kingstone 32GB+2GB ePoP memory accounts for nearly 27% of the total BoM cost.

Display subsystem

Another key functional block of the Google Pixel Watch is the 1.2-inch “Always-on” OLED display. It has a resolution of 450×450 dots or 320 ppi and supports up to 1000-nits brightness for a clear display in sunlight.

Above the screen is a custom 3D Corning glass (Gorilla Glass 5) which can save the model from waist-high drops.

Sensors

As a smartwatch with healthcare and fitness features, the Pixel Watch is equipped with multiple sensors, including a 6-axis inertial sensor and a digital compass (both from STMicroelectronics), an altimeter, an ambient light sensor (ALS) and a light encoder to enable the haptic crown.

In addition, the heart rate monitoring system consists of Texas Instruments’ analog front end (AFE) and three sets of infrared LED and photodetector, which is behind the ECG feature.

Connectivity and Cellular

The Pixel Watch delivers more independent-use experiences thanks to the support of LTE Cat 4 communication, which consists of Samsung’s S915 transceiver, Skyworks’ highly-integrated SKY53737 diversity receiver and SKY77643 multi-mode, multi-band PA module, Qorvo’s antenna switch, and multiple duplexers from muRata.

Besides, the design also includes standalone GPS chip BCM47765 and Wi-Fi/Bluetooth combo BCM430132 from Broadcom, and STMicroelectronics’ ST54J1ATNN NFC chip to support eSIM and Google Pay.

Design wins: Samsung, BOE biggest beneficiaries

Samsung not only provides the highly integrated main chipset but also supplies the LTE transceiver and other paired components, collectively accounting for around 20% of the total BoM cost.

BOE, which is the exclusive supplier of the smartwatch’s custom 1.2-inch-diameter OLED display, captures over 14% of the total BoM cost to rank second in terms of cost contribution.

Conclusion

Thanks to the launch of the Pixel Watch, Google has managed to further expand its hardware portfolio under the Pixel family. The industry expects the move will help increase the popularity of the Wear OS ecosystem. But when compared with the current market leader, the Apple Watch series, which differentiates itself by leveraging the high integration of in-house hardware and software, and refined design, and accounts for approximately one-third of total shipments, there is still room for the Pixel Watch series to improve. Through the deep collaboration with Samsung, Google is likely to empower its next-generation Pixel Watch with a more powerful, integrated, intelligent and secure processing platform.

Ethan@counterpointresearch.com

BoM Analysis – iPhone 14 Pro Max Costs 3.7% More to Make Than iPhone 13 Pro Max

The blended bill of materials (BoM) cost for the iPhone 14 Pro Max with 128GB Nand flash is about $464, a 3.7% increase from that of the iPhone 13 Pro Max.
In the iPhone 14 Pro Max, Apple’s self-designed chips accounted for over 22% of the total BoM cost. Apart from the A16 bionic processor, Apple’s self-designed chips include PMIC, audio, connectivity and touch control.
The upgrade to the A16 Bionic chipset from the A15 Bionic resulted in an $11 cost increase, driving the processing group’s cost share to 20% in BoM.
The new main camera with a 48MP image sensor and the screen with an always-on display feature drive the cost increase.

Producing a 128GB iPhone 14 Pro Max mmWave smartphone costs Apple up to $474, according to Counterpoint Research’s BoM analysis. The BoM cost of the sub-6GHz model comes to $454. Assuming a 44% mmWave mix (by the end of 2022), the blended materials cost for the iPhone 14 Pro Max is about $464, a 3.7% increase over that of the iPhone 13 Pro Max. The application processor, display and camera are the main categories where cost has increased. These components now also command a larger share in the BoM.

Counterpoint Smartphone BoM Master File

Apple’s first 4nm process-powered application processor

Apple’s new-generation mobile processor, the A16 bionic, contains a whopping 16 billion transistors, a 6.7% increase from the A15’s 15 billion transistors. This facilitates improved CPU, GPU, neural engine and camera ISP performances. Due to its more advanced 4nm process, the application processor alone is estimated to introduce a cost increase of $11, driving the processing category’s share to 20% in BoM cost.

Display upgrade with always-on feature

Apart from upgrading the peak brightness in HDR mode and outdoor mode, Apple has added an always-on display feature in the iPhone 14 Pro Max. The feature makes the display easy to view when the lock screen is on. All the upgrades together have increased the display category’s . The panels used in the iPhone 14 Pro Max are supplied by Samsung.

48MP CIS upgrade on main camera

The iPhone 14 Pro Max has a 48MP main camera with a quad-pixel image sensor with a sensor area that is 65% larger than that in the iPhone 13 Pro Max. The main camera’s sensor-shift stabilization has also been upgraded to the second generation in the iPhone 14 Pro Max. Sony supplies the image sensor for Apple. Sunny Optical, Largan Digital and GSEO are the suppliers for the main camera’s 7P lens, while LG Innotek supplies the module. The front camera has been improved with the addition of the auto-focus feature while its lens has been upgraded to 6P from the 5P present in the iPhone 13 Pro Max. GSEO and Sunny Optical are the main suppliers of the front camera lens. These upgrades together have driven the camera category cost up by $6.30 in the iPhone 14 Pro Max.

Cellular group cost drop

Compared with that of its predecessor, the iPhone 14 Pro Max’s blended cellular group cost share dropped to 13% due to a fall in component prices as 5G cellular technology rises in popularity. Qualcomm, Qorvo, Skyworks, Broadcom and are component suppliers in the cellular category for the iPhone 14 Pro Max.

Diversified sources of supply

Apple continues to diversify its supply sources. KIOXIA and SanDisk supply the NAND flash for the iPhone 14 Pro Max, while SK hynix, Samsung and Micron supply the LPDDR5. NXP and Broadcom remain suppliers of wireless connections, display and touch control solutions for the device. Cirrus Logic, Goertek, Knowles and AAC dominate the audio-related design. TI and ST Micro are major suppliers of power and battery management IC in the iPhone 14 Pro Max.

Self-designed components’ cost share rise

Apple’s self-designed components have a larger share in the overall BoM cost of the iPhone 14 Pro Max than in that of the iPhone 13 Pro Max. Apart from the A16 bionic processor, Apple’s self-designed chips include PMIC, audio, connectivity and touch control. Our estimate suggests that Apple’s self-designed components account for 22% of the overall BoM cost of the iPhone 14 Pro Max.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the technology, media and telecom (TMT) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts:

Shenghao Bai

BoM Analysis: JioPhone Next Costs $58 to Make, Lays Robust Foundation for 5G Shift

The JioPhone Next is one of the cheapest 4G smartphones available in the market.
The device will help Jio shift hundreds of millions of 2G and 3G users to 4G.
The device will also make it easier to shift 4G users to 5G once the coverage has reached a good threshold.

Reliance Jio, in partnership with Google, launched the JioPhone Next 4G Android smartphone on November 4 last year. With an aim to shift hundreds of millions of 2G and 3G users to 4G, the telecom operator has worked hard with suppliers to maintain a very disruptive bill of materials (BoM) at around $58. The smartphone is being manufactured at Reliance Jio’s Neolync facilities in Tirupati and Sriperumbudur in southern India. While Qualcomm, Samsung and AI start-up Syntiant have benefitted from the first generation of JioPhone’s 4G Android smartphone offering, Chinese suppliers have also won some important design slots in the multi-million seller. This can be seen in the following BoM and specification analysis:

Display

The JioPhone Next features a 5.45-inch LCD display with 720×1440 pixels resolution and 60Hz refresh rate. The LCD is illuminated by backlight and is relatively inexpensive, making it an ideal solution for budget smartphones. The display is manufactured by upstart Chinese supplier TXD. For the cover glass, Jio has opted for Corning Gorilla Glass 3, which has alkali-aluminosilicate that offers some resistance to scratches and protection from accidental drops. The display, along with the cover glass, takes ~21% share of the BoM cost.

Storage and memory

When it comes to low-end budget smartphones’ memory, most brands opt to use an eMMC (embedded multimedia card) storage. However, Jio has opted to go for an eMCP (embedded multi-chip package) solution due to space and power constraints on the PCB. An eMCP offers a smaller footprint compared to an eMMC. Sitting between eMMC and UFS (universal file storage) solutions, an eMCP storage combines NAND and DRAM to minimize latency and cut down on power consumption. 2GB of single-channel LPDDR3 SDRAM running at 672 MHz and 32GB of eMMC 5.1 flash is manufactured by Samsung and accounts for ~22% of the BoM cost.

Processor

The JioPhone Next is powered by Qualcomm’s QM215 SoC produced on a 28nm process node. The QM215 is a toned-down variant of the Snapdragon 425. This chipset is specifically designed to work on ultra-low-cost Android Go phones. The QM215 packs four ARM Cortex-A53 cores clocked at 1.3 GHz, which aim to increase the CPU performance by 50% compared to the earlier Qualcomm 2-series platform. The QM215 also packs in a third-generation Adreno 308 GPU clocked at 500 MHz, which has 24 ALUs (arithmetic logical units) that can perform 27 Giga-floating-point operations per second [GFLOPs FP32 – (single precision)].

Neural Processing Unit (NPU)

The smartphone also packs in a special speech recognition NPU from Syntiant. This NPU – NDP101 – is manufactured on a 40nm ULP (ultra-low power) process node featuring a single Core Arm Cortex-M0 CPU coupled with 112KB of SRAM that is capable of running deep learning algorithms efficiently for all the offloads from CPU and in ultra-low power consumption use cases as well.

The NPU supports an always-on listening feature, and wake-up-to-speech and voice commands, a key differentiator for the phone to bridge the “digital divide” by supporting multiple local languages not only for wake word but also translation. Reliance Jio’s partnership with Google has also brought along Pragati OS, an optimized solution of Android GO.

The processing section together contributes ~11% to the BoM cost.

Camera

The smartphone offers a single 13MP camera, with a 1/3″ sensor from SK Hynix, on the rear flanked by an LED flash. On the front, there is an 8MP camera with a 1/4″ sensor. Both camera modules contribute to ~9% of the BoM cost.

Sensors and connectivity

The JioPhone Next’s nominal sensor array includes accelerometer, proximity and ambient light sensors. Wireless connectivity choices include Wi-Fi 802.11 b/g/n, Bluetooth 4.1, and AGPS (indoor positioning). The single-band Wi-Fi and Bluetooth combo IC is powered by Qualcomm’s WCN3610.

In terms of connectivity, the Qualcomm 215 sports a Snapdragon X5 LTE Cat 4 modem with support for VoLTE, VoWiFi, EVS and Dual SIM Dial VoLTE, which are a key feature for emerging markets such as India. It is the first 2-series platform to support 802.11ac and Bluetooth 4.2. The SoC also supports dual camera ISPs. Sensors and connectivity together contributed around ~11% to the BoM cost.

Battery

The Jio smartphone packs a lithium polymer 3400mAh battery with a 13.09Wh rating. It is manufactured by Guangdong Fenghua NEW Energy. The battery is charged via a micro-USB port. The device features Qualcomm’s Quick Charging IC. The battery along with the power management ICs accounts for ~9% of the BoM cost.

Key takeaways

The JioPhone Next is a unique smartphone for its price segment, retailing at around $55-$80 (INR 4,400-INR 6,400) depending on the seasonal/regional/buyback offers, supported by a compact design. This makes it a compelling device for budget-oriented and feature phone users to cross the chasm.

Leveraging its scale, Jio has designed an optimum BoM for this smartphone despite supply chain constraints and increasing component prices. Jio has closely worked with Google to optimize the entire experience for the chosen hardware stack.

The device rounds up Jio’s strategy well — first, to use the JioPhone Next 4G to attract hundreds of millions of 2G feature phone users to its 4G network and second, to aim to deliver a sub-$100 to sub-$150 (INR 8,000-INR 12,000) affordable 5G smartphone once the coverage has reached a good threshold to attract the mass-market 4G smartphone users to its 5G network. This two-pronged strategy will be the key to Jio’s growth and extend its leadership to the 5G era as well. Further, at some point in 2024, Jio will also be compelled to launch an affordable 5G mmWave + Sub-6 GHz smartphone as the cost deltas between the two would have narrowed significantly from the BoM perspective.

For detailed component and pricing analyses, queries or to acquire this research, contact info@counterpointresearch.com

BoM Analysis: Xiaomi’s 12S Ultra Costs $516 After Camera, SoC, Display Upgrades to 11 Ultra

With the release of the Xiaomi 12S series in early July, Xiaomi has further expanded its flagship portfolio in its home market. The new series is also being seen as an extension of the Xiaomi 12 series, aimed at consolidating the brand’s presence in the $600 and above wholesale price band through the second half of 2022.

Xiaomi 12 Series Failed to Strengthen its Share in Premium Segments (>$600)

Thanks to promotions during the 2022 Xiaomi Fans Festival, Xiaomi managed to improve its sales share in the flagship battlefield in April. However, the brand desperately needs new flagship models to replace the Xiaomi 12 and 12 Pro, whose performance has been far less than expected. Against this backdrop, Xiaomi has introduced the new Xiaomi 12S line-up with optimized user experiences.

Sitting at the top of the new series, the Xiaomi 12S Ultra is a successor of the Xiaomi 11 Ultra. The latest Snapdragon 8 Gen 1 Plus platform, the all-new Samsung E5 LTPO 2.0 OLED display and the industry-leading 1-inch 50MP main camera, as well as a tie-up with Leica, represent the major areas of upgrades.

According to Counterpoint Research’s BoM Analysis Practice, producing a Xiaomi 12S Ultra equipped with 8GB RAM and 256GB storage costs around $516. The market price of the model is RMB 5,999 or around $899. The processing, display and image sub-systems, along with memory, contribute nearly 67% of the total manufacturing cost. Below is the functional cost structure of the ultra-premium model.

Xiaomi 12S Ultra BoM Cost Increases to $516

In terms of suppliers, Qualcomm, Samsung and Sony are among the beneficiaries. Qualcomm has a wide range of design wins, from the SoC and paired power management and RF transceiver to RF front-end components, connectivity IC and audio codec. The latter two vendors provide the display panel and LPDDR5 RAM, and image sensors respectively.

Xiaomi has shipped more than 2 million Xiaomi 11 Ultra smartphones so far at the same starting price of RMB 5,999 or around $899. The Xiaomi 12 Ultra is expected to take the baton from here and help improve Xiaomi’s profitability in the ultra-premium segment.

BoM Analysis: OnePlus Watch Costs up to $68 to Produce

OnePlus entered the smartwatch battlefield in March 2021 with the launch of the OnePlus Watch. The model features dual processing units that enable it to reduce battery consumption. According to Counterpoint Research’s bill of materials (BoM) analysis, producing the OnePlus Watch standard edition costs up to $68.

Sound selection of components from various manufacturers enables OnePlus to make a multifunctional smartwatch at an affordable price. The smartwatch has accelerometer, gyroscope, ambient light, air pressure, capacitance, and heart rate and blood oxygen (SpO2) sensors, which are commendable offerings in this price range.

Processor and MCU

OnePlus has assigned the smartwatch with a 32-bit Arm Cortex-M4 low-cost platform processor, STM32L4R9ZI6P, supplied by STMicro. The processor features a full set of DSP (digital signal processing) instructions along with 2MB of flash memory and 640KB of SRAM.

This is paired with the Apollo 3 Blue ultra-low-power microcontroller (MCU) from Ambiq Micro, which is an optimal solution for battery-powered devices and acts as the sensor hub. The MCU is based on the Cortex-M4F Core and supports a base clock frequency of 48 MHz which can clock up to 96 MHz and grants the smartwatch a balanced combination of performance and power efficiency. With a secondary MCU, the OnePlus Watch can continuously monitor and process the data collected from various sensors, even when the primary processor is at sleep or in standby mode.

Note: Numbers may not add up to 100% due to rounding off.

Storage and Connectivity

OnePlus has equipped the smartwatch with 128MB of PSRAM supplied by AP Memory and 4GB of NAND flash. The eMMC NAND is manufactured by Kingston.

For wireless connectivity, the OnePlus Watch has two standalone chips correspondingly from Airoha and Infineon. The GNSS/GPS chip from Airoha integrates the RF and baseband circuits and can track multiple satellite constellations simultaneously, providing the user accurate location data and tracking with L1 and L5 dual-band support. Bluetooth 5.0 is enabled by the Infineon chip with an integrated 2.4 GHz transceiver, which is manufactured on a low power 40nm CMOS fabrication process.

OnePlus doesn’t offer connectivity features such as Wi-Fi or LTE. 30% of the BoM cost is occupied by storage, sensors and connectivity.

Display and Audio

The smartwatch has a sizable 1.39-inch AMOLED display with 2.5D curved glass that has a resolution of 454*454 pixels with a pixel density of ~326 ppi.

CS47L15 from Cirrus Logic, which is a high-performance, low-power audio codec that integrates an equalizer and programmable DSP with proprietary SmartHIFI technology, provides enhanced voice communication quality for both near-end and far-end users. The audio amplifier (AW8896CSR) is from Awinic. It supports bass and treble enhancement functions, enables High RF noise suppression and aids in audio quality enhancement.

Display and audio take up 24% of the BoM cost.

Body Structure and Battery

The OnePlus Watch has a well-built body that is constructed out of 316L (L – low amount of carbon) stainless steel, the preferred choice for smartwatch design as it is resistant to cracks and offers sound tensile strength.

Powering the smartwatch is a non-removable lithium-ion (Li-Ion) battery with a capacity of 402 mAh rated at 1.59 Wh. Power and battery management for the OnePlus Watch is handled by Texas Instruments PMIC Controller.

Conclusion

OnePlus has done a decent job on its first smartwatch offering. The selection of low-power and dependable components is great. But there is still a lot of room for improvement. Connectivity and storage are the two key areas where the OnePlus Watch is lagging immensely.

BoM Analysis: Apple Watch Series 6 Costs $136 to Produce

Boston, Beijing, San Diego, Hong Kong, Buenos Aires, London, New Delhi, Seoul – June 1, 2021

Apple dominates the global smartwatch market. Ease of use, aggressive marketing, global market grasp and branding make Apple the top player in the segment. According to Counterpoint’s Global Smartwatch Shipment Tracker, Apple’s market share climbed to 33% in Q1 2021.

Producing an Apple Watch Series 6, Apple’s latest smartwatch model, costs the company around $136, a bill of materials (BoM) analysis by Counterpoint’s Component Research Practice. The smartwatch’s application processor, display, sensors and casing together account for ~68% of the total device value.

Apple Watch Series 6 BoM Analysis

Starting with the display, the Apple S6 comes with an Always-On Retina LTPO (low-temperature polycrystalline oxide) OLED screen, supporting 1,000 nits of peak brightness. Apple’s exclusion of the Force Touch gasket in this model, while keeping the BoM cost down, makes the watch a bit slimmer by 0.3 mm compared to the earlier generation. Display and the touch module, along with the strengthened ION-X glass, amount to slightly over 13.2% of the total device BoM.

The new S6 SIP (System-in-Package), which Apple claims is 20% faster than the S5, features dual cores that are based on the A13’s energy-efficient “little” Thunder cores running at 1.8 GHz. The connectivity department also sees an advancement with Apple’s W3 chip handling the wireless part, which includes dual-band Wi-Fi support and Bluetooth 5.0. U1 chip based on the ARM Cortex architecture, built on the 16nm FinFet Process. The U1 (ultrawideband chip) allows for a precise location tracking. The S6 module includes 1GB of LPDDR4X RAM and 32GB (SK Hynix) of onboard memory. The S6 SIP module, DRAM and memory add up to 23.7% of the overall cost.

Commenting on Apple Watch’s capabilities shaping the design choice, Senior Analyst, Ethan Qi, said: “Apple Watch makes for a perfect companion device whether you are out doing yoga or a casual workout. With the ongoing pandemic and the increase in health consciousness among people, Apple’s inclusion of surplus sensors is what makes it a resourceful confidant. Further, the growing app ecosystem and services integration like Apple Fitness+ are driving more users to purchase Apple Watch.”

The sensors can potentially be deployed to detect seizures and tremors, and help people with conditions like irregular heartbeat, epilepsy and low blood oxygen saturation levels, which are associated with conditions like asthma, sleep apnea and COVID-19. Apple Watch can even predict diabetes and hypertension. The vast array of sensors includes an accelerometer with fall detection, third-generation optical heart rate sensor, blood oxygen sensor, gyroscope, altimeter and an ambient light sensor. These sensors together make up around 12% of the total BoM cost.

The speaker gets an improvement as well, with Apple claiming it to be 50% louder. The Digital Crown, which is an integral part of Apple Watch, provides haptic feedback with the help of Taptic engine. This engine takes up around 35% of the space inside Apple Watch. The latest Taptic engine is more robust compared to the former. With the battery size amounting to 303.8 mAh, it is a minor increase of about 7.8mAh from the previous Series 5. Apple also provides fast charging in the Series 6. Battery and the wireless charging coil in the smartwatch amount to about 6% of the total BoM cost.

Apple has opted not to launch the ceramic model for this variant. Ceramic is known for its hardness and is virtually scratch proof overall, but it is a more brittle material compared to titanium. However, Apple has dropped ceramic because it is a bit more expensive to manufacture.

The casing and body materials remain the same, including the body crown, metal frame, rear cover made of aluminium/stainless steel, ceramic/sapphire crystal back, and stainless-steel frame. Together these make up around 13.3% of the BoM cost.

Waterproofing remains identical to the previous model with an ISO rating of 22810:2010 up to 50 metres. Other passive components like analog, discrete ICs and switches are, remarkably, not that expensive.

The core functionality of Series 6 remains the same as that of Series 5 after the addition of the always-on altimeter and blood oxygen sensor, brighter display, minor upgrade to the battery, and fast charging capability.

It is worth pointing out that the miniaturization of Apple Watch components and their tight integration is driving the price further up. With September just a few months away, Apple may bring a redesigned body and a plethora of upgrades to its hardware, software and sensors.

Feel free to contact us at press(at)counterpointresearch.com for questions regarding our in-depth research and insights, or for press enquiries.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts:

Ethan Qi

Follow Counterpoint Research
press(at)counterpointresearch.com

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BoM Analysis: Galaxy S21 Ultra Costs 7% Less Than Galaxy S20 Ultra 5G

Beijing, Boston, Toronto, London, New Delhi, Hong Kong, Taipei, Seoul – April 22, 2021

The Galaxy S21 series makes a big leap in computing performance with its shift from 7nm to 5nm chipsets.
Samsung’s ecosystem contributes as high as 63% of the total BoM cost of the Galaxy S21 international edition.

Producing a 128GB Galaxy S21 Ultra mmWave smartphone costs Samsung up to $533, around 7% less compared to the Galaxy S20 Ultra 5G, according to the latest bill of materials (BoM) analysis by Counterpoint’s component research practice.

The Galaxy S21 series has an optimized cost structure with the models’ cost falling between $400 and $600. Thanks to the integration of 5G modem in the main chipset, the new system has been simplified, helping bring the cost down. The adoption of the in-house Exynos 2100 platform provides room for more cost improvement. Samsung’s ecosystem contributed as high as 63% of the total BoM cost of the Galaxy S21 international edition.

Exhibit 1: BoM Cost Estimates for Galaxy S21 series

Priced lower than the recent series, the new generation of the Galaxy flagship family quickly gained traction in markets such as Europe and North America. The overall sales volume in February (Galaxy S21’s first full month of sales) increased 22% over 2019’s Galaxy S20 series, reaching over 3.4 million units.

Commenting on the aggressive pricing of Galaxy S21, particularly for the base model, Research Analyst Parv Sharma said, “In line with the price drops, Samsung managed to deftly balance the performance versus cost. It made a significant improvement in computing power with the 5nm process-based mobile platforms, either Snapdragon 888 or Exynos 2100 depending on the sales market, and also introduced a refreshed design for the rear camera bump.”

Exhibit 2: Significant Improvement in CPU Performance

The design of Galaxy S21 and S21+ is more cost-oriented. The two models’ BoM cost is estimated to drop by 12%~13% from the Galaxy S20 and S20+ 5G at the expense of hardware specifications (both models have screens with lower density and no ToF camera, along with decreased RAM capacity in the Galaxy S21+). On the other hand, the new Ultra edition is a real top-of-the-range flagship model, a combination of class-leading specs, from the 6.8-inch QHD+ Dynamic AMOLED 2X display to the 108MP led rear camera setup.

Besides cost savings from the single-chip solution, the Galaxy S21 Ultra reduced the number of mmWave antenna modules from three to two and dropped the 25W charger and wired earpieces from the box. 5G baseband and RF components, memory and box contents represent the major areas of the cost decrease. However, the cost of connectivity increased slightly due to the support for UWB and S Pen.

Exhibit 3: Galaxy S21 Ultra BoM Cost Decrease Versus Galaxy S20 Ultra 5G

The early launch of the Samsung Galaxy S21 series is being seen as an effective countermeasure against the intensified competition in the global smartphone market’s premium segment. Sharma said, “Samsung has discontinued the development of Galaxy Note series, with its notable feature of S Pen being passed on to the Galaxy S21 Ultra. From 2021 onwards, Samsung’s flagship range (retail price of $800 and above) will focus on the Galaxy S family and Z series (premium foldables). The former is expected to play a critical role in strengthening Samsung’s share in the high-end segment amid increasing competition from both Apple and other Android phones.”

Background:

Analyst Contacts:

Ethan Qi

Follow Counterpoint Research
press(at)counterpointresearch.com

BoM Analysis: iPhone 12 Costs 21% More Than iPhone 11

The blended materials cost for the iPhone 12 with 128GB NAND flash is nearly $415, a 21% increase over the iPhone 11.
In the iPhone 12, Apple’s self-designed components including the A14 bionic, PMIC, Audio and UWB chip make up over 16.7% of the overall BoM cost.
The shift from LCD to OLED in the iPhone 12 is a big jump, resulting in an over $23 cost increase.
Cost increases are also driven by 5G-related components, with components like 5G modem, transceiver and RF front-end system collectively contributing a $34 increase.

Producing a 128GB iPhone 12 mmWave (millimeter-wave) smartphone will cost Apple up to $431, 26% higher compared to the iPhone 11, according to the latest bill of materials (BoM) analysis by Counterpoint’s component research practice. Despite over $27 cost savings due to the simplified RF design, the BoM cost of the sub-6GHz-only model for overseas markets still increased by 18%.

Assuming a 38% mmWave mix, the blended materials cost for the iPhone 12 with 128GB NAND flash is nearly $415, a 21% increase over its predecessor. Application processor, 5G baseband, display and 5G RF components represent the major areas of the cost increase.

Exhibit 1: iPhone 12 BoM Cost Increase Over iPhone 11

First TSMC 5nm process-powered application processor

The new generation of Apple mobile processors, the A14 bionic, contains a whopping 11.8 billion transistors, up 39% from the A13’s 8.5 billion units. This provides significant performance improvements in aspects of CPU, GPU and Neural Engine. Given the much higher 5nm wafer cost (nearly double that for 7nm), the application processor alone is estimated to introduce a cost increase of over $17. Our analysis also suggests Apple’s self-designed components including the A14, PMIC, Audio and UWB chip make up over 16.7% of the overall BoM cost.

The return of Qualcomm

Qualcomm’s advanced cellular technology found its way back with Apple’s latest launch. Besides the SDX55M 5G baseband, Qualcomm also provides the paired transceivers and RF discrete components for both sub-6GHz and mmWave versions. For the iPhone 12, Qualcomm will be the second-largest electronic component supplier behind Samsung Electronics.

Display upgrade from LCD to OLED

Apple has upgraded the display of its base models to OLED, which supports high dynamic range and higher peak brightness. From the cost perspective, the shift from LCD to OLED in the iPhone 12 is a big jump, resulting in an over $23 cost increase. Both Samsung Display and LG Display are set to supply more panels to Apple.

Increased cost to enable 5G

The iPhone 12 has been equipped with more RF components to support the 5G-related spectrum. Our analysis shows the blended cost increase from the RF subsystem is around $19. Besides Qualcomm, other major content gainers are Skyworks, MURATA and Avago.

Diversified sources of supply

Apple has managed to diversify its supply sources. For the iPhone 12, the memory orders are split between industry leaders, with Samsung and KIOXIA (Toshiba) supplying NAND flash, and SK Hynix and Micron supplying LPDDR4X. The camera content shares are largely gained by Sony, LG Innotek and Sharp. NXP and Broadcom continue providing solutions for wireless connection and display/touch control. Cirrus Logic, Goertek, Knowles and AAC dominate the audio design. TI and ST are major suppliers of power and battery management IC. Apple has also expanded its cooperation with ASE/USI, leveraging the latter’s SiP (System in Package) packaging technology to miniaturize the design.

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Conclusion

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