iSuppli: Teardown reveals 16GB iPhone 4S carries $188 BOM

As always, the guys over at IHS iSuppli have just published analysis of their iPhone 4S teardown showing a BOM of $188 for the 16GB and in the process revealing some previously undisclosed suppliers.

The $188 BOM is of course for the entry-level 16GB model, which would also inflate to $196 if factoring in an $8 manufacturing cost. BOM for the 32GB model comes in at $207 (again, before manufacturing), and $245 for the 64GB variant.

The report describes the 4S’s insides as including a “wealth of innovation”, in contrast to the device’s feature set which was received as an incremental upgrade by most. Among the suprises revealed during the teardown– NAND flash memory supplied by Hynix Semiconductor (a first for iPhone) and a “unique custom” wireless module from Avago Technologies Ltd.  The device torn down by iSuppli carried the same sony Sensor as the device X-Rayed by Chipworks but they postulate that Omnivision may also provide an 8-megapixel sensor as well for some of the devices.

Senior director of teardown services for IHS, Andrew Rassweiler, explains: Read more

iSuppli speculates LTE costs and extra chipset will keep Apple away this year

In a note last night, Wayne Lam of IHS-iSuppli made the case against Apple going with 1st generation LTE chips in its next iPhone.

“It remains to be seen whether the next Apple iPhone set for introduction in September will support 4G LTE,” said Wayne Lam, senior analyst for IHS. “However, if it does, two things are clear. First, the iPhone’s minuscule printed circuit board (PCB) will have to grow in size in order to support the first-generation LTE baseband processor as well as all the supporting chipset. Second, the next iPhone’s BOM value certainly will increase substantially compared to the iPhone 4 if LTE is implemented in the same manner as in the HTC Thunderbolt.”

I think Apple is more concerned with the extra space and battery life the new chips would consume much more than the extra cost of the components.“The first generation of LTE chipsets forced a lot of design compromises with the handset, and some of those we are just not willing to make,” said Peter Oppenheimer, Apple chief financial officer, speaking at the company’s April 2011 earnings call.

The next round of chips which would allow Apple to put LTE in a similarly sized package won’t hit the streets until the first half of 2012.

I don’t see an iPhone as big at the Thundebolt or Charge, ever.  Read more

iSuppli: Apple became world's largest Semiconductor buyer in 2010 and 2011 won't be close

Looking at the graph above it really feels like Apple is taking huge leaps in growth while the rest of the industry is happy to be taking baby steps.  iSuppli today says that with the help of the iPad, Apple passed Samsung and HP in 2010 to become the largest consumer of semiconductors in the world.  While 2010 is relatively close still, 2011 will have Apple pulling away from the pack.

Apple in 2010 bought $17.5 billion worth of semiconductors, a 79.6 percent increase from $9.7 billion in 2009. This represented the highest rate of increase among the world’s Top 10 OEM semiconductor buyers, allowing Apple to rise up two positions to take the No. 1 rank in 2010. Apple in 2009 was the third-largest semiconductor purchaser, behind Hewlett-Packard Co. of the United States and Samsung Electronics Co. Ltd. of South Korea; it was sixth in 2008.

NAND Flash for iOS devices was a big contributor to Apple’s rise.

“Apple’s surge to leadership in semiconductor spending in 2010 was driven by the overwhelming success of its wireless products, namely the iPhone and the iPad,” said Wenlie Ye, Analyst for IHS. “These products consume enormous quantities of NAND flash memory, which is also found in the Apple iPod. Because of this, Apple in 2010 was the world’s No. 1 purchaser of NAND flash.”Apple is likely to continue increasing its semiconductor spending during the coming years at an above-average pace, allowing the company to extend its lead over Hewlett-Packard, Samsung and other OEMs in 2011 and beyond. In 2011 Apple’s semiconductor spending is expected to exceed that of Hewlett-Packard by $7.5 billion, up from $2.4 billion in 2010.

Via iClarified Read more

Orange plans iPad competitor, but Apple needn't worry says iSuppli


Orange has channeled some of its iPhone profits into creating products designed to compete with the iPad, but Apple needn’t worry as analysts expect it will dominate the tablet market all the way to 2012.

A French report in Les Echos tells us Orange is preparing to introduce its own tablet device at a price under half that charged by Apple for the iPad. Read more