1) You pay more for components from a distributor in Europe because components have VAT applied every time they change hands. In America, for instance, only end-user products are taxed.
Same here. I have to pay VAT but will get that back 2 months later.
All I have to pay is the VAT added to the end customer.
No import tax on the parts as well, and EBV gets them directly from the manufacturers.
2) Distributor's cut as well.. I know vs BOM prices I saw TI is selling for cheaper. TI themselves charge comparatively more for OMAP than say, Samsung or Freescale charge for their SoCs and of course Chinese SoCs made on old 65nm processes fabricated natively and with a lot less custom IP are going to cost even less. Not that you can't buy them outside of China, like Amlogic's (not that you necessarily should)
This might be a big thing. Running a company in Europe is way more expensive than, for example, in US. And of course a lot more than in China.
Germany with all it's organization-and-whatever-fees makes things way more expensive as well.
And every company involved needs to cover these costs and make profit.
This probably adds A LOT.
3) Buying in EU instead of USD for companies offering in USD (or even better for Chinese native components, RMB/CNY), incurring conversion overhead
I agree, that will also add costs.
4) The LCD at ~$50 doesn't seem very cheap to me at all, I got a quote from a Hong Kong supplier for a 4.8" 800x480 Taiwanese (like Pandora's) LCD + resistive digitizer that had reasonable specs in its datasheet, it was $15 for 5000k quantity.. of course I didn't get samples so I don't know if it had some kind of big problems. Its power consumption was decently worse than Pandora's, which seems very good for its class - maybe there's a big cost associated with that? But it goes without saying that these Chinese PMPs aren't using $50 LCDs.
We tried some cheap ones, but as the quality was horrible, we stuck to the $50 one.
5) PoP is relatively expensive, although IIRC Pandora's is currently < $20 on Digikey (that includes NAND).. anyway these designs are mostly using external DDR2 instead, which of course uses more power and board space but is much cheaper (is made in China, for one thing.. anyway look at what RAM costs on cheap PC DIMMs, the cost per-chip is very low, 1GB of the stuff could probably be had for under $5). More importantly, you can get it assembled in China because they don't need special equipment to handle PoP.. someone I talked to who has experience with Chinese designs didn't even know PoP existed. As you're aware even finding a company that'll do it low volume in the west is hard, and I'm sure you pay much much more at GP than these Chinese assembly houses charge. For storage they use whatever cheapest micro-SD cards they can get.
Oh, right. Though PoP-NAND REALLY is a lot faster, and less powerhungry. Though no chinese company probably cares about that.
6) The components have better integration, part of that is due to them being newer.. a lot of these Chinese SoCs have built-in HDMI transceivers for instance. Some have built-in audio and even some power regulation, or at the very least need simpler PMICs. Unlike OMAP3 most SoCs now have 3.3V I/Os natively, which mean they don't need all the level shifters Pandora does which takes up precious board space..
We also added some stuff like proper audio amps, as we tried to get a high quality
7) Two nubs both having their own controllers. I'm sure any Chinese handhelds with analog inputs have them going straight to the SoC.
And both needing Atmels, which aren't cheap as well.
8) Saving on all of these components might not add up to that much in BOM cost, but it means a much simpler board with fewer layers. Which is of course a lot cheaper to manufacture and test.
It would go down from 20 EUR to maybe 10 EUR, true.
Now do I think a full-on Pandora clone, using the exact same hardware components, would be $150 in China? Probably not, although I think it'd be much less than $500 (probably less than $300).
Yes, I could guess it would be about $300 or less. No money conversion and less costs to run a company.
I'm at 260 - 270 EUR production costs right now, so $300 in China seems very likely.
Look at this teardown of Yinlips YDP-G18, you should see some of what I'm talking about:
http://dingoo-scene....ictures-of.html
Suffice it to say, the three main parts you listed - memory, LCD, and SoC, would cost around $5-10, $15-20 and $10-15 respectively (add $3-5 for internal SD card) for a typical design. Not 100 EUR. Even for the same components 100 EUR seems like a lot. I doubt Beagleboard-xM's PCB costs nearly as much as Pandora's does. Not a completely straight comparison since both contain components the other doesn't have, but the overall design complexity and volume seems similar.
Well, the Beagle-xM is only 6-layers, so the PCB is a bit simpler.
It's not as complex, and it's missing some very costly factors:
Assembly of the case (manpower in Germany is expensive), Battery, the LCD and custom-made LCD-Cables and nubs.
That saves a lot of costs here as well.
http://www.ebv.com/i...x_ebvsearch_pi1[qs]=1&ct_ref=u58&tx_indexedsearch[sword]=DM3730&tx_indexedsearch[results]=5&tx_indexedsearch[lang]=0&search_est=45c94ebeaf79e64628947d5854735515
32 EUR ($43) @ 500 vs:
http://www.findchips...ail?part=DM3730
Distributors selling it in the USA for $32 @ 500, or from TI directly:
Well, my price is cheaper than both of those, if you discuss with distributors, you get way better prices.
Paying a few dollars more, but thankfully, not that much
Is volume a part of the big savings for Chinese parts? Of course, but I really don't think it has the impact you say it does. I was quite alarmed to hear you say that your price break for 10,000 units would be spending half as much as you do now (which is what if I may ask.. 2000? 4000?) That would be an average across EVERYTHING, so some components would have to have a much higher price break. In quotes I've seen, even from real commodity distributors like Digi-Key or Mouser, you tend to get your biggest breaks by around 1000. You get some from that but it hits diminishing returns, and that's pretty much what you'd expect.. what economic reason would there be to get 1/4th the price on 100,000 units vs 2,000 (as you seemed to be saying before)? Of course a lot of components flat out can't be had in low quantities, and distributors won't carry them or won't even be offered them. But these Chinese components can typically all be had in lowish volumes, there are warehouses all over China and other countries that are wanting to get rid of stocks of them. And I really doubt all these Chinese companies are buying them in huge quantities, much less do I think any of these individual PMPs are selling like wildfire.
Not only the parts, though they really MAKE a difference.
If you want to buy 10,000 or more OMAPs, you can talk directly with manufacturers like TI and get a way cheaper price than from a distributor.
No manufacturer will talk to you if you only want 1000.
Population and assembly also makes a huge difference.
It takes about a day to setup the population machine (load the parts, etc.) for a complex device like the Pandora.
1 machine hour is about 300 EUR, so you pay at least 2400 EUR just for setting everything up. Regardless whether you will produce 10, 1000 or 100,000 units.
Aditionally, ordering higher quantities will lower the production costs A LOT.
GC, for example, has about 50 employees. They all cost money.
When calculating their quotations, they also need to include some safety money. It might be they won't have many customers and not much work to do for a few weeks or even months. You never know.
That would cost them quite some money - and they need to be sure they will make enough money to compensate this.
Now, ordering 1000 Pandoras per month will keep their staff busy for about 1 week. However, they might calculate their costs to be sure they could survive another week without doing anything.
This would increase my costs.
If I order 10,000 Pandoras, their staff is busy for a full month. No need to worry about having to pay their staff without having work.
So no additional costs have to be included. Which makes things cheaper for me.