Qualcomm Takes A Third Of Amazon Phone BOM.

Qualcomm accounts for a third of the BOM of Amazon’s phone, reports IHS.

Qualcomm ICs in the phone are: an apps processor/baseband ($38), RF ($18), WLAN & front end ($5), and power management ($8).

Out of a total $201 BOM, Qualcomm takes $69.

The other big items are memory – 32GB of flash and 2GB of low power DRAM costing $36.50, screen ($27.00), cameras ($20.50),UI and sensors ($11.50) and the mechanical/electro-mechanical component costing $28.

The retail price of $650 looks like the sort of mark-up you expect to get on a bottle of wine in a restaurant which Amazon would doubtless put down to R&D, licensing, software development etc.

It still seems a hefty margin – and out of keeping with Amazon’s strategy on the Kindle which was to sell it at cost price to get share.

As it is, this looks like a me-too phone, costing the same as any as other top-range phone and no prettier.

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3 Comments

  1. August 17, 2014 22:33

    This is not terribly surprising. It would be interesting to compare the percentage of BOM Qualcomm components make up in competitors.

  2. david manners
    July 31, 2014 15:33

    I’ve always felt that a phone with a screen that runs right to the edge of its face, or a phone with a roll-up or fold-up screen would be the bees’ knees, SEPAM, or one that is simply simpler.

  3. SecretEuroPatentAgentMan
    July 31, 2014 11:47

    Well it would be interesting to know what it takes to make something that goes beyond a “me-too phone” as the standard is pretty high already.

    Gyro and accelerometers good enough for dead reconing would be useful when GPS is not available. Better cameras with IR also have their uses. Yet none of these are exactly earth shattering.

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