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PS3 teardown: 30% fewer parts, $300 cheaper
When the gang at iSuppli first tore open a PlayStation 3 back in November 2006, they pegged the cost to build the $500 model was $805 in materials. Now they're back and looking inside the $400 version, which they estimate is $448.73 in parts -- still a loss leader for the company, but only by about one Ulysses S. Grant this time. The number of components has also dropped from 4,048 to just 2,820, and both the Cell processor and NVIDIA GPU have slimmed down from 90nm to 65nm. They suspect Sony might be able to lower costs and turn a profit sometime in 2009, but while you may be rooting for this generation's underdog, don't get your hopes up for a price drop any time soon.
PS3 costs 53% less to make now than at launch
It's well known that Sony's latest console is a powerful, expensive piece of tech. When Sony launched the PS3, it lost over $200 on every unit sold -- in spite of its $600 price point. However, over time Sony has been able to reduce the costs of manufacturing the system, by removing PS2 compatibility and switching over to a more efficient 65-nanometer chips.iSuppli, the company which broke down the PS3 at launch, estimated the cost of making a PS3 was more than $840. Now, they say the PS3 costs 53% less to make -- at around $445, for a system which sells at $400. Sony is still losing money on each system sold, but in a much less extraordinary way.Not only are the individual components cheaper to make, there are simply less things inside a modern PS3. According to iSuppli, the number of parts inside a PS3 has fallen from 4,048 to only 2,820. Since launch, Sony has reworked the innards of the PS3 to include combined chips. The falling price of components also helps Sony a lot: the Cell processor cost $89 at launch, but now only costs $46 to make.Sony should be able to break even with the PS3 starting in 2009, which makes us wonder if they'll start adopting a more aggressive price strategy late next year. We hope so -- they need a way to make themselves attractive to customers, without breaking the bank.[Via PlayStation Forums]
LCD shipments expected to skyrocket in Latin America
With DirecTV launching HD service in Latin America, we'd say it's about time its residents realized that flat-panels are the wave of the future present. According to a fresh iSuppli report, the Latin American television market is expected to make a hasty and noticeable transition between now and 2012. Reportedly, LCD TV shipments to the region are set to rise and account for over 83% of the market in under four years; meanwhile, shipments of bulky CRT sets will decline to make up around 8% of the total market. The numbers are pretty baffling when you consider that CRTs held 77.4% of the market just last year, and it's actually rather scary to think where all of those soon-to-be-unwanted sets will end up.
iSuppli says T-Mobile G1 costs $144 to make, nothing to love
Teardown specialist iSuppli is at it again, digging through the G1's guts this time around in an effort to wrap its inquisitive brain around the inaugural Android handset's bill of materials. The result? $144, which naturally doesn't reflect HTC's R&D -- an additional expense that might have been unusually low for the G1 considering HTC's overwhelming expertise in manufacturing all things mobile. For the record, this is about $30 less than iSuppli's July estimate for the 8GB iPhone 3G, though the comparison isn't terribly fair considering that the G1 has a mere pittance of internal storage by comparison. There's no telling what T-Mobile pays HTC for each and every G1 it sells, but we pay $179 (or less) on contract -- so it seems HTC is making itself a nice little profit right out of the gate and customers aren't footing much of the bill. At least, not until they've gone a few months into their two-year agreements.
Global HDTV shipments exceed SDTVs for first time
The times, they are a-changin'. Back in February, we found that LCD TV shipments had surpassed CRTs for the first time in history. Now, an iSuppli report on HDTV growth has shown that HDTVs overtook standard-definition televisions "as the leading TV shipped globally" in 2008. Sure, the current economic environment may put a damper on HDTV sales for the moment, but the previously mentioned research sees no sign of growth slowing in the long-term. In fact, it forecasts that HDTV unit shipments will surge to 241.2 million by 2012, up from 97.1 million units in 2007; in comparison, it reckons that just 23.1 million SDTVs will ship out in 2012. Oh, and if you're eager for even more smile-worthy news, the report also suggests that HD set-top-boxes will represent 50% of the overall STB market in under four years. Time will tell.[Via InformationWeek, image courtesy of ThePoolSide]
Over half of 2009 vehicles in America will offer iPod support
And we're not talking about that 3.5mm-to-3.5mm trick, either. No sirree, we're referring to bona fide iPod integration, and 2009 marks the first year where over half of all US-bound automobiles are expected to offer optional support for Apple's prolific PMP. When looking at 2008 model year vehicles, just 39% offered tight iPod integration, but according to Phil Magney, vice president of automotive research for iSuppli, the "automotive industry is at the point where in-vehicle technologies -- or the lack of them -- are influencing sales." Furthermore, Bluetooth is expected to be in 82% of 2009 US vehicles (optional or standard), and just so we're clear, we're talking all cars, not just the luxury brands. Unfortunately, no data was provided for expected compatibility with the DJ Ditty.[Via Wired, image courtesy of JPMagazine]
Samsung, Sony stay on top of the LCD sales battle
Samsung and Sony are celebrating (with their new displays no doubt) a 1-2 finish in iSuppli's second quarter LCD TV sales report. Vizio's slipped from the number one spot last year, to behind Philips, Sharp and LG, respectively, accounting for only 6 percent of the market. According to iSuppli's analysts, major name brands moving aggressively into smaller sizes and budget retailers like Wal-mart is squeezing the smaller Taiwanese competition out of the picture. Vizio bust onto the scene with extraordinary deals on flat screens, at this point does it become an also-ran as its principal supplier hooks up with the big names, or (we hope) is there at least one more hurrah coming Black Friday?
iSuppli sez iPhone 3G is running Apple $53 less than original
Tech firms seem to have this uncanny ability to significantly boost functionality while significantly reducing cost with each new generation of a product -- and you'll never believe this, but it looks like Apple is no exception. The teardown and bean-counting experts over at iSuppli are at it again with the iPhone 3G, finding that the whole kit and kaboodle tallies up to just $174.33 (give or take) for the 8GB model in material and manufacturing costs. That works out to about $53 less than iSuppli's estimate for the original 8GB model back in June of last year, an amount saved in part by moving to a single 10-layer circuit board (versus a pair of 6-layer boards). The firm figures Apple's shelling out about $50 in royalties for each iPhone 3G that rolls off the assembly line, leading to a grand total of $224.33 in costs. Offset that with a healthy AT&T subsidy, and all told, we're looking at something like a 55 percent margin to help Steve finance his next round of black turtlenecks.[Via AppleInsider]
Anaylst: Wii owners will want to move to PS3
iSuppli (makers of iAnalyze) has determined PS3 to be the victor of the current "console war." There are millions of Wii owners right now, and many will likely want to upgrade to a new system in a few years time. 2008 is already being hailed as the PS3's big turnaround; Wii owners will look to it as their second console of choice.This is in part due to their assumption that Sony will slash the price of the PS3 again this year to entice the Wii audience. Blu-ray dominance also plays a part in this, they say. Mix in some AAA titles as well as the variety of pick up and play titles on the PSN, we'd say that there will be a big jump in PS3 sales, too. But whether or not it's due to the Wii audience seeking a more powerful console is anyone's guess. We'll just say it's because the PS3 will rock this entire year.[Via GameDaily]
Apple taking it easy on flash memory order this year
CNET is reporting that iSuppli announced Apple is "cutting" their flash memory order this year, and in this case "cutting" doesn't mean "cutting" the way you or I would use it (as in, "The doctor said I had to cut my sugar intake, so I'll only have one doughnut instead of six."). No, it means "cutting" as in they're only raising their orders for flash memory by 16% instead of the expected 32% (which is like saying "I'll only eat three more doughnuts instead of six").Still, it's enough to send a few folks into a tizzy -- as CNET's Tom Krazit says so perfectly: "If Apple coughs, the flash memory market gets sick." I don't know that there's too much to read into this, except maybe that we probably won't see a brand new iPod this year. With the iPod touch and all the iPod iterations out right now, Apple pretty much has the market covered on mp3 players. That doesn't mean they won't drop lots of new products (I hear that they used to make computers of some kind), but it probably does mean that in terms of the current iPod brand, growth has peaked. Until they bring out that gaming device, flash memory isn't their biggest need.
Research says PS3 to lead the pack in 2008 growth
Market research firm iSuppli, noted for their component breakdown comparisons, has concluded that the PS3 will post the strongest growth in 2008. Unsurprising, considering the position PS3 was in 2007. However, one look at the NPD figures from January shows that PS3 sales have started to gain some traction. More surprising is their prediction PS3 will get into the lead position in 2011. This year, they say the PS3 should sell about 10 million consoles, compared to the 360's projected estimate of 7.5 million and the Wii's 12.2 million. Remember they said the strongest growth, not the most consoles sold. But, this prediction agrees with EA's figures that PS3 will outsell Xbox 360 this year. In 2011, they said the PS3 will lead the market with 38.4 million units. It would be a first place victory, but by a much narrower margin than Sony had experienced with PS1 and PS2.
iSuppli looks at LCD dominance, emerging competition
Not that it bears repeating, but LCDs have a pretty firm grip on the display market at large. Of course, that doesn't mean that other technologies will just sit idly on the sidelines, and research firm iSuppli managed to take a closer look at emerging competitors to see just how viable some alternatives actually are. It should be noted that the report tends to focus on displays used in smaller wares, such as navigators, cellphones and heads-up displays, but the findings can certainly be applied to the HDTV industry at large. Throughout the writeup, bi-stable displays -- defined as "electronic displays that are capable of presenting an image without using power" -- are expected to see the biggest growth in the coming years, while near-eye display revenue and the global HUD market will see slightly less impressive gains. Moreover, the pocket projector market is poised to explode, as it promises gigantic output from an incredibly diminutive footprint. Granted, it remains to be seen how long it'll take for a 1080p projector to fit in the palm of one's hand, but we can safely say we're already infatuated with the idea.[Image courtesy of PolymerVision]
AMD slips out of iSuppli's top 10 semiconductor suppliers
iSuppli -- the market research firm that keeps us up to speed on exactly how much each iPod pads Steve's wallet (among other things) -- has recently published its list of top players in the 2007 semiconductor market, and lo and behold, AMD isn't even in the top ten. It's noted that while Intel's chip revenue is expected to rise 7.7-percent in 2007, AMD's sales are predicted to sink some 22.7-percent for the year. Of course, AMD had only risen into the upper echelon of this list for the first time last year, but now it has fallen back to 11th, trailing the likes of Samsung, Toshiba, STMicroelectronics, Infineon, Sony, NXP, Intel and Texas Instruments. If you're interested in seeing the details behind the numbers, be sure and hit the read link below. Oh, and please do keep the fanboy comments respectable, will ya?[Via PCWorld]
Vizio still #1 for LCDs in North America
Just when we were ready to give the North American LCD throne back to Samsung and Sharp, iSuppli has released its numbers, claiming Vizio is still on top. In contrast with the previous rankings from DisplaySearch, iSuppli saw Samsung improve its marketshare in the third quarter to 12.8 percent, but still unable to match Vizio's mark of 13 percent. Along with the new numbers is information that the other manufacturers have taken note of Vizio's success and increased their promotions, the tight competition should promise many choices and better prices as we get into the all-important holiday season.[Via TG Daily]
Samsung's still the #1 TV manufacturer
Vizio may have snatched the sales crown when it comes to LCDs in the U.S., but Samsung maintained it's position as the largest worldwide TV manufacturer in the second quarter. Following Samsung's 12.4% market share were LG with 11.4% and Philips with 7.1%. The numbers were run by iSuppli, who forecast the quickening demise of the CRT, with it dropping to 38% of unit shipments in 2009, compared to 56% this year. No word on exactly what part of that was HDTVs, but we hope buyers are getting the most quality possible out of those new plasmas and LCDs.[Via TV Snob]
TI mounts new DLP push
TI has given its 20-year old DLP technology a shot in the arm in the form of a $100 million advertising and marketing campaign. The ads should be airing during HD broadcasts of ESPN's Monday Night Football, as well as ABC and ESPN's Nascar Nextel Cup offerings. And if you don't have a HDTV, TI will be moving a 60-seat DLP 3D cinema around the country during the Nascar season to start your HD addiction. This marketing effort is taking place even when iSuppli has estimated shipments of 1.5 million DLP sets in 2007, about flat from last year. It's a bold move for a technology facing increasing competition from plasma and LCD. We're hoping the DarkChip 4 devices deliver real-world results, or the slogan "It's all in the mirrors" could morph into "It's all smoke and mirrors."
iSuppli: new iPod nano costs Apple less than $83 in components
The iPod nano is the "most popular music player in history" according to Steve Jobs. So there's nothing like an iSuppli teardown of the new, 3rd gen device to get the ol' analyst juices flowing. So get this: iSuppli claims that for every $149 4GB nano and $199 8GB nano sold, Apple's components costs are just $58.85 and $82.85, respectively. That's an 18.5% lower direct materials cost than the previous nano. In other words, a substantial increase in margins for what should be a tidy boost in Apple profit after covering R&D costs. The teardown also indicates that Apple has once again opened the money trough to a whole new bevy of suppliers including Dialog Semiconductor, Intersil, and Synaptics. Micron is the big winner here as they supply the NAND flash storage whereas Toshiba provides it for the iPod touch. Could be that the effects of Samsung's NAND factory power outage are starting to show. Enjoy it while you can suppliers, chances are you'll be begging for Apple's business once the next round of product refreshes goes down. Bill of materials after the break.
*Updated* PS3 and Xbox 360: production cost comparison
The recent announcement of increased production for blu-ray diodes used in the PS3 increased speculation that a price-cut for the PS3 may be coming sooner rather than later. After all, cheaper production costs equate to cheaper overall manufacturing costs and then, a price cut to incite a resurgence in product interest, right? Well, taking a look at the production cost comparison, it seems Sony may need to bring costs down on a few other key areas of their PS3 console before they consider a price-cut. In comparison, a few months after the 360 launched, cost production estimates were similarly expensive (sans built-in wireless and inclusive next-gen DVD drive). Don't worry fans, we'll get our price cut. Eventually.[Via 1P Start]*Update*The data that Digitimes released today was from the November 2006 report that iSuppli released last year. The 360 model in the above chart is NOT the Elite, nor is that the current cost of either console. From GameDaily:"iSuppli public relations manager Jonathan Cassell informed GameDaily BIZ that Digitimes compiled the data from last November's report and erroneously labeled it as May data."[Via GameDaily]
50-percent of your iPhone purchase to pad Apple's wallet?
Sure, LG's KE850 Prada handset will set users back a cool $778, and the Google Switch just might pop in to make things a bit more interesting, but a recent research report has unveiled that Apple's sure-to-be-sold-out iPhone is a lean, mean, profit-generating machine nonetheless. While Apple's well-known for selling its iPods (and to a lesser extent, its Macs) for much, much more than it cost to manufacture, even we're a bit taken aback at how hard those corporate buyers must be workin' those suppliers on this one. According to iSuppli (no affiliation with Apple, of course), the 4GB iPhone will yield a "49.3 percent profit margin on each unit sold at the $499 retail price," while the 8GB rendition will kick back a 46.9-percent margin. You heard right, they're supposing the $499 mobile only costs Apple $245.83 to produce, while the 8GB flavor demands just $264.85. Of course, this isn't the first time a hot-selling product has been broken down by the numbers to prove just how ripped off we're all getting (if these numbers are to be trusted, that is) -- but hey, unless you've got the means to buy capacitors and LCD touchscreens by the boatload, you're probably stuck paying exactly what they ask. Plus if all this sudden competition gets a bit too heated, don't think Apple doesn't have any room to introduce a (highly desired) price drop.
Sony losing mad loot on each PS3
We all knew Sony was dropping a fair bit of cash on each PS3 sold, but we suppose we got a bit too hung up on the resultant pricetags -- the notorious $499 and $599 SKUs -- to give the actual losses much of a thought. Well, worry not Sony, iSuppli's got your back. Turns out Sony will be losing change to the tune of $241.35 for every "premium" (WiFi and 60GB HDD) console, and a whoppin' $306.85 for the bargain-basement 20 gigger. In comparison, Microsoft loses $75.70 per 360 it sells, while Nintendo is laughing all the way to the bank with a profit per Wii sold. Just in case you missed it the first time around, or fell off your chair and forgot what you were reading about: Sony will lose the equivalent (or more) to the retail price of a competing console every time a cash register rings up a PS3 sale this holiday. We suppose it's for the best, then, that Sony won't have a whole lot of 'em to hand out, since we're sure Sony's own costs will start to drop as production really ramps up next year. Be sure to peep the read link for a full breakdown of the costs.UPDATE: Our bad, Microsoft actually makes $75.70 per 360 sold, as opposed to the $71 they were losing last year at launch.
