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Sanjib.A
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Teardown on Xiaomi's Mi3
Sanjib.A   7/26/2014 6:36:06 AM
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Thanks for this post.  It is nice to have the information on the BoM cost of Fire phone. I was amazed to see that while Amazon has prices Fire at @ USD 649, the Chinese manufacture Xiaomi has priced Mi3 at ~USD 249 (in India). There features offered by Mi3 is almost the same as those of Fire. Hence I would assume the BoM cost of Mi3 similar as that of Fire. It would be interesting to have the same teardown exercise done on Mi3... :)

goafrit
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Re: Teardown on Xiaomi's Mi3
goafrit   7/27/2014 10:17:55 AM
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>> Preliminary Teardown analysis suggests that Amazon's $649.00 phone costs $209.00 to build

This gives a good idea what would have happened if this sector had been a monopoly. For them to ask for this amount in a commoditized market is interesting.

_hm
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Re: Teardown on Xiaomi's Mi3
_hm   7/27/2014 11:58:45 AM
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Yes, it is high priced device. $300 is very attractive price range.

Who designed this hardware and who is assemblling them?

 

Kinnar
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Re: Teardown on Xiaomi's Mi3
Kinnar   7/28/2014 6:24:21 AM
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Comparing only the price will not be a good idea for Amazon Fire, this is a special phone that is launched for the Amazon lovers.

As the article says "Amazon has undoubtedly invested heavily in software features that are not included in this BOM costing estimate, most notably the software behind the Dynamic Perspective display feature" 

Also the Amazon FireFly is another great feature that comes with this phone. It turns the phone into a scanner that redirects you to the products available on the Amazon store.

Yes but the premium that Amazon is charging, I also think is very high. 

goafrit
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Re: Teardown on Xiaomi's Mi3
goafrit   8/3/2014 12:03:47 PM
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>> Yes but the premium that Amazon is charging, I also think is very high. 

That is a deviation from the Amazon pricing model of hardware. They used to give it out free and then allow you to give them money through content. But here, the hardware is expensive. This means they are up to something - real phone company.

Kinnar
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Re: Teardown on Xiaomi's Mi3
Kinnar   8/4/2014 3:15:55 AM
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I think that Amazon may be providing the library of Kindle supported books free along with this tablet. Need to check that, that may be the only reason of high cost. Besides the better software facilities.

goafrit
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Re: Teardown on Xiaomi's Mi3
goafrit   8/6/2014 5:22:05 AM
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>> Need to check that, that may be the only reason of high cost. Besides the better software facilities.

No. The cost is high because there is need for Amazon to start making profits. Wall Street is losing patience with this firm with its heavy spending and constant quarterly loses.

Kinnar
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Re: Teardown on Xiaomi's Mi3
Kinnar   8/6/2014 6:46:24 AM
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Oh may be you are right, but this will not be the strategy of a multinational company to earn profits, all the other giants are also having the same pricing strategies. This is because we are comparing it with Xiaomi it look too much price difference. But if you compare it with any other product from the electronic giants then the price difference is not that huge as such.

elctrnx_lyf
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Re: Teardown on Xiaomi's Mi3
elctrnx_lyf   8/6/2014 10:25:32 AM
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Defnitely Qualcomm seems to be the most benefited from the Amazon product.

Joel-Teardown
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Re: Teardown on Xiaomi's Mi3
Joel-Teardown   7/27/2014 1:51:07 PM
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We have done the Mi3 and will be doing the mi4 shortly. If you are interested in the teardown results you can contact me via teardown.com and happy to discuss these.

alex128
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Re: Teardown on Xiaomi's Mi3
alex128   7/28/2014 12:46:38 PM
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Not sure if you guys have teared down OnePlus One yet. This Amazon Fire will lose its pants facing OnePlus One.

Stacy Wegner
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Re: Teardown on Xiaomi's Mi3
Stacy Wegner   7/28/2014 4:16:01 PM
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No, we have not yet analyzed the OnePlus One, but YES - it is on our list.

goafrit
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Re: Teardown on Xiaomi's Mi3
goafrit   8/3/2014 12:05:10 PM
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>> This Amazon Fire will lose its pants facing OnePlus One.

What a name for a phone. I think Amazon will not just win because of its hardware. The ecosystem of all things Amazon is very important here.

goafrit
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Re: Teardown on Xiaomi's Mi3
goafrit   8/3/2014 12:01:43 PM
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>>We have done the Mi3 and will be doing the mi4 shortly. If you are interested in the teardown results you can contact me via teardown.com and happy to discuss these.

You have always shared these reports and hope we can benefit on these pages of eetimes.com

TanjB
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3D effect
TanjB   7/28/2014 12:00:32 PM
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Probably has nothing to do with the pixels, as speculated in your teardown.  It is more likely based on how we synthesize 3D from multiple cues.  People who have the use of only one eye still see the world in 3D.  And, the head tracking needs of dynamic perspective seem very similar to this:

http://johnnylee.net/projects/wii/

See the third project down, the one about 3D?  It is uncanny to watch that video, you share the illusion on your screen even though your head is not being tracked.  It seems the brain is able to adopt someone else's perspective and create the illusion.  Pretty cool.

selinz
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MS collaboration?
selinz   7/28/2014 3:49:42 PM
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This would have been a good target for MS collaboration.

Anyone know whether this was attempted?

goafrit
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Re: MS collaboration?
goafrit   8/3/2014 12:06:04 PM
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>> This would have been a good target for MS collaboration.

What do you mean by "MS collaboration", please?

chanj0
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Revenue Stream and Innovation
chanj0   7/29/2014 3:26:13 AM
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I am sure Amazon is going after the recurring revenue coming from video and product selling from Fire instead of from selling the phone.

In technology point of view, Amazon does deliver an innovative idea of using 4 cameras to track user's face to provide better 3D image. The team earns the credit of first of its kind. :)

goafrit
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Re: Revenue Stream and Innovation
goafrit   8/3/2014 12:07:38 PM
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>> I am sure Amazon is going after the recurring revenue coming from video and product selling from Fire instead of from selling the phone.

That is the business model. The question is why they have to make the hardware expensive to execute that. In the past, they subsidize the hardware to enable the evolution of the monetization of the contents.

alex_m1
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real costs
alex_m1   7/29/2014 8:57:10 AM
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This teardwon forgets the costs of prime($99) and of of mayday(the video customer support - unknown costs). They should be included somehow.

Joel-Teardown
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Re: real costs
Joel-Teardown   7/29/2014 9:48:42 AM
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@real costs we only cost the Bill of Materials components, Prime isn't a cost associated discretely with the device nor is Mayday. These and other software enabled services are a cost to Amazon (and other vendors to develop and support) and undoubtedly factored into the complete cost of a device or business unit, but are outside our device and IC level costing methodology.

alex_m1
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Re: real costs
alex_m1   7/29/2014 9:53:28 AM
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@joel the teardown is great,no doubt. just when we talk about. consumer price we should mention the other stuff.

docdivakar
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Re: real costs
docdivakar   7/30/2014 8:41:50 PM
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@Joel, great teardown info, I admire Teardown.com's work in bringing it to the EE Times community.

I could not locate Synaptics' touch sreen controller in the pictures, it is assembled underneath the display?

MP Divakar

rick merritt
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Author
Others agree
rick merritt   7/29/2014 3:49:47 PM
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IHS just released its BoM figures and they are in line with Joel's estimates:

"The BOM of the Amazon Fire Phone equipped with 32 gigabytes of NAND flash memory amounts to $201, according to a preliminary estimate by the Teardown Mobile Handsets Intelligence Service at IHS Technology (NYSE: IHS). The cost of production rises to $205 when the $4 manufacturing expense is added."

wilber_xbox
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Re: Others agree
wilber_xbox   7/30/2014 2:52:17 PM
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I think once you know the hardware component then based on the average price you should be able to estimate the BOM. However, what i do not understand in most of the teardowns is the hidden cost estimates that are not considered so that the owner know the true value of the device. Such as how much a given technology is worth in money.

docdivakar
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Re: Others agree
docdivakar   7/30/2014 8:33:56 PM
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@wilber_xbox  you are correct, the component actual cost will never be known to the rest of us. Many times the components are priced based on volume commitments and periodic payments that helps a component vendor meet shareholder expectations. No doubt most component vendors will have tiered pricing structures and also market-specific pricing (as in Asia, EMEA etc) coupled with a cut in SLA's (service level agreements).

MP Divakar

goafrit
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Re: Others agree
goafrit   8/3/2014 12:10:30 PM
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>> However, what i do not understand in most of the teardowns is the hidden cost estimates that are not considered so that the owner know the true value of the device. 

This is a guidance, I will say. If Amazon places an order for 10 million chips, the price will be different when it is buying say only 1 million units. The expert is providing a guidance and we thank them for that. It cannot be hard science until you know the quantity and discount from the firm.

daleste
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Re: Others agree
daleste   8/3/2014 4:39:56 PM
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Also, don't forget the additional costs in manufacturing.  Yield and startup costs can be high at the beginning.  It is good to see that Amazon will have a profit from selling this hardware, unlike the tablets.  They do need some profit for the bottom line.

goafrit
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Re: Others agree
goafrit   8/6/2014 5:12:37 AM
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>> They do need some profit for the bottom line.

It is a new change in strategy for a company that focuses more on ecosystem monetization over hardware costs. It is possible they are getting the message from Wall Street on their stock price.



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