Tag Archives: iSuppli

Market Analysis

Samsung Galaxy Tab Carries 205 Bill of Materials Isuppli Teardown Reveals

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According to a market research firm iSuppli Corp, with its new Galaxy Tab GT-P1000, Samsung Electronics has developed a product with features and component costs that position it as a large-scale smart phone, rather than as a true competitor to Apple Inc.’s iPad.

The Galaxy Tab carries a Bill of Materials (BOM) of $205.22, significantly less than iSuppli’s $264.27 estimate for the 16Gbyte 3G version of the iPad, based on the preliminary results of a dissection conducted by iSuppli’s Teardown Analysis service. However, the reduced cost is largely the result of Galaxy’s smaller and lower resolution display compared to the iPad.

“Instead of matching up with the iPad on a feature-by-feature basis, the Galaxy Tab really is larger version of Samsung’s Galaxy S smart phone,” said Andrew Rassweiler, director, principal analyst and teardown services manager for iSuppli. “While the design approach makes the Galaxy less expensive to produce than the iPad 3G, it also makes for a product that lacks the same usability. The Galaxy Tab’s screen resolution, size and technology are not at the same level as the iPad. This is a critical difference, given the fact that the display is a key differentiating factor for the iPad.”

On the plus side for the Galaxy Tab, the device includes some features not found in the iPad. For example, the Galaxy Tab includes a gyroscopic Microelectromechanical Systems (MEMS) sensor, likely for use in gaming. Furthermore, the Galaxy Tab comes with a primary 3 Megapixel (MP) autofocus camera along with a 1.3MP front-facing or video conferencing camera. Finally, the Galaxy Tab includes build-in support for Adobe’s Flash to provide more universal Web browsing—something notably lacking from the iPad.

The expanding Galaxy

Aside from the use of a larger display, the component content of the Galaxy Tab closely resembles that of the Samsung Galaxy S smart phone. Notably, both feature a Samsung-branded Hummingbird 1GHz ARM-based applications processor and an Infineon Technologies baseband processor that controls the wireless telephony/communication portion of the design.

The Galaxy Tab is a functional cell phone as well as tablet computing device, running 3G (UMTS/HSPA) in three frequency bands. According to Samsung, Galaxy Tab users can download applications from the Samsung Apps store and digital media from the company’s Hub service.

Display of thrift

The Galaxy Tab employs a 7-inch TFT-LCD display with a 1,024 by 600 resolution. In contrast, the iPad uses a larger 9.7-inch diagonal display with a resolution of 1,024 by 768 pixels. While also using a TFT-LCD display, the iPad adds In-Plane Switching (IPS) technology, which enhances the viewing angle and picture quality.

iSuppli estimates the cost of the display/touch subsystem in the Galaxy Tab at $57; The comparable figure in the iPad analysis would be $98. As in most new smart phone and tablet designs dissected by iSuppli’s Teardown Analysis service, the display and touch screen represent the most expensive portion of the design, accounting for 27.8 percent of the Galaxy Tab’s total BOM. Samsung Mobile Display is the source of the LCD screen.

Stardust memories

Next on the cost ranking is the memory subsystem, at a cost of $51, representing 24.9 percent of the total BOM. This subsystem features a 16Gbyte of Multilevel Cell (MLC) NAND Flash memory from SanDisk Corp. It also includes a Samsung multichip package combining 8Gbits of MLC Flex-One NAND, 4Gbits of mobile Double Data Rate (DDR) mobile DRAM and 1Gbit of One DRAM.

The numerous mechanical and electromechanical components represent the third most expensive electronic subsystem in the Galaxy Tab, at a cost of $15.22, or 7.4 percent of the BOM.

User interface facts

The user interface subsystem is fourth on the cost list at $13.87, or 6.8 percent of the BOM. This section includes the gyroscope—a 3-axis device from STMicroelectronics. It also features a capacitive touch screen controller from Atmel Corp. and an LVDS transmitter from Texas Instruments Inc.

Next on the cost countdown is the Samsung-supplied battery, at $10.60, or 5.2 percent of the BOM. No. 6 on the cost list is the baseband subsystem, featuring an integrated circuit from Infineon, at a cost of $10.07, accounting for 4.9 percent of the BOM.

Radio frequency and more

Coming in seventh on the cost list is the radio frequency/power amplifier subsystem at $9.09, or 4.4 percent of the BOM. This system features an Infineon radio frequency transceiver and four TriQuint Semiconductor transmit modules.

Next are the applications processing subsystem at $8.84, or 4.3 percent of the BOM. This section includes the previously mentioned apps processor from Samsung. Other notable suppliers include a single-chip Bluetooth/FM/WLAN controller and a GPS receiver device from Broadcom Corp. Maxim Integrated Products contributed a power management Integrated Circuit (IC).

Market Analysis

iSuppli Trims 2010 Semiconductor Forecast Amid Softening Demand Rising Stockpiles

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With consumer demand slowing and inventories rising, the market research firm iSuppli Corp. is trimming its 2010 semiconductor revenue forecast to 32 percent, down from its previous outlook of 35.1 percent.

Global semiconductor sales now are expected to amount to $302 billion in 2010, up from $228 billion in 2009. Despite the reduced outlook, 2010 still will be a year of impressive growth and record-setting revenue for the semiconductor industry. Revenue in 2010 will rise by about $74 billion compared to 2009 and be almost $28 billion higher than 2007, the previous last peak year for semiconductor revenue, according to iSuppli’s semiconductor industry analysis.

iSuppli now expects that revenue in the fourth quarter will decline by 0.3 percent compared to the third quarter, the first sequential decrease since the market collapse in the fourth quarter of 2008 and first quarter of 2009.

“There has been a significant slowdown in the second half in consumer demand for some electronic devices, including PCs,” noted Dale Ford, Senior Vice President (Market Intelligence) at iSuppli. “Meanwhile, inventories have been building throughout the semiconductor supply chain. These factors will conspire to cause a small sequential decline in semiconductor revenue in the fourth quarter.”

Largely because of this fourth-quarter decline, global semiconductor revenue in the second half of 2010 will rise by 7.8 percent compared to the first half of the year. This has reduced from 10.7 percent growth in the first half of 2010 compared to the second half of 2009.

The leading electronic equipment market driving demand for semiconductors in 2010 will be the data processing area, a category dominated by PCs. With shipments of mobile PCs—including tablets—continuing to soar in 2010, semiconductor sales to this area will rise by 38.6 percent. The second-strongest growth area will be wireless communications, fueled by booming demand for smart phones. Global semiconductor sales to the wireless communications area will rise by 30 percent in 2010.

Even the lowest-growth markets are expected to generate impressive semiconductor consumption in 2010. Wired communications and consumer electronics will drive semiconductor revenue growth of 25.4 percent and 26.5 percent, respectively, in 2010.

In terms of specific semiconductor products, the hottest items in 2010 will be DRAM, voltage regulators, LEDs, Programmable Logic Devices (PLDs) and data converters. Revenue for each of these products is projected to grow by more than 43 percent in 2010. DRAM will lead the group with 87 percent growth on the strength of the soaring PC market.
While the industry outlook remains cloudy and revenue will contract in the fourth quarter, iSuppli does not believe this signals the start of a significant downturn in the global semiconductor market.

“Unstable economic conditions and worrisome market reports continue to create an environment of poor visibility and ongoing uncertainty in the electronics industry,” Ford said. “This has led to frequently expressed concerns regarding a potential double-dip downturn in both the overall economy and in the electronics and semiconductor industries. However, based on its most recent analysis of the electronics supply chain, iSuppli expects the chip business to experience a soft landing in 2011 and not to suffer the kind of dramatic downturn seen in 2009.”

Global semiconductor revenue in 2011 will rise by 5.1 percent, iSuppli predicts. Sequential quarterly growth in 2011 is projected to follow a more normal seasonal pattern compared to 2010, with declining revenue in the first quarter followed by improving sales that will reach a peak in the third quarter. The long-term growth expectation is for average annual growth of slightly more than 4 percent between 2010 and 2014.