OPPO Enco W51 is 100% localized and extremely cost-effective

We have analyzed the BOM of the OPPO Enco W51 noise cancelling headphones, and this time we will analyze the number of components and their cost. 

Device analysis description:

Before we start the analysis, we need to explain some concepts and issues of component analysis. We purchased the machine through the official open channels of the market. Each product may have a different supplier for the same component, so we purchase and disassemble the machine as the standard.

During the component analysis process, new products may encounter situations where the brand or specific model cannot be identified. This part of components accounts for about 10%. The cost estimate is determined based on the component database and will be corrected in combination with some market research. However, there are many factors that affect the cost of components. For example, the quantity purchased by the manufacturer from the supplier will also cause the unit price of the components to change. Therefore, the error in the cost estimate will also be about 10%.

Therefore, the cost estimate of components is for reference only and may differ from the actual cost.

Device analysis:

We estimate that the cost of OPPO Enco W51 noise-cancelling headphones is US$35.28 (approximately RMB 244.06), including an assembly fee of US$1.7. The total cost of the main control is US$16.97, accounting for approximately 45.9% of the total cost of the device.

OPPO Enco W51 noise-cancelling headphones contain a total of 327 components. All chip solutions, devices and non-electronic components are provided by Chinese manufacturers, accounting for 100% of the cost.

We have summarized the top five components of the OPPO Enco W51 noise-cancelling headphones in terms of cost. The most expensive one is the Bluetooth audio and noise-cancelling main control chip, which costs $4.5. This is Hengxuan Technology's fully integrated adaptive active noise-cancelling solution, which allows high-quality active noise-cancelling headphones to achieve high sound quality and active noise reduction using a fully integrated chip.

The second most expensive item is the battery in the earphone charging box, which costs $2.5. This is a 480 mAh lithium polymer battery manufactured by Baili Electronics (Dongguan) Co., Ltd. and supports wireless charging. The highly integrated 2.5W wireless charging receiver chip costs $1.2, ranking third. The chip complies with the WPC 1.2.4 version of the Qi protocol and can pass the WPC BPP certification. The output voltage is 5V, the output current is adjustable, and the maximum can reach 500mA. It integrates over-temperature, over-voltage and output over-current protection, integrated temperature monitoring, charging completion and host fault control and other functions.

The cost of the core microcontroller chip of Nuvoton Technology ranks fourth, and the smart charging warehouse chip of Siyuan Semiconductor ranks fifth. The chip integrates the charging module and the discharging module, and the charging current and the discharge cut-off current can be adjusted externally, which greatly simplifies the peripheral circuits and components, and provides a simple and easy-to-use solution for the application of Bluetooth headset warehouses.

From the TOP 5 cost of OPPO Enco W51 noise-cancelling headphones, it can be seen that the cost of using chips provided by domestic manufacturers is lower, which is conducive to saving costs and improving product competitiveness.

The TWS headset market is vast, and domestic manufacturers have great potential

According to Counterpoint data, the shipment growth of TWS headsets has continued to expand. In Q1-Q4 of 2019, the shipment of TWS headsets was 17.5 million, 27 million, 33 million and 51 million units respectively, showing an accelerating trend from quarter to quarter. However, the current market penetration rate of TWS wireless headsets is only 15%, which is relatively low. The agency also predicts that the shipment of TWS wireless headsets will reach 230 million pairs in 2020, which will continue to double compared to 2019.

TWS headset market share in the fourth quarter of 2019 Source: Counterpoint

In such a huge TWS headset market, Apple has always maintained a leading position, accounting for nearly half of the market share, but domestic manufacturers are also constantly making efforts. Xiaomi has seized the mid-to-low-end market share with its high cost-effectiveness, and Huawei has joined the competition in the mid-to-high-end market.

The quality of the main control chip is crucial for TWS headphones. Domestic companies have good competitive strength in this field. Among the TWS headphone chip suppliers in the mid-to-high-end market, domestic Hengxuan can already compete with Qualcomm. Huawei's early products used Hengxuan's chips, OPPO mainly uses Hengxuan chips, and Xiaomi is also a user of Hengxuan. A small number of foreign acoustic brands have also begun to use chips from Chinese suppliers. The future TWS headphone market is broad, and domestic manufacturers can win the market by relying on their own product and price advantages.

Although OPPO entered the market relatively late, the Enco W51 noise-canceling headphones it launched are easy to use. They connect as soon as you open the cover, and can be used to pause, switch songs, and make calls when you take them off. They are equipped with a system-level sound quality compensation algorithm, which can restore the sound details before noise reduction while supporting noise reduction, fully meeting the requirements of high sound quality. This noise-canceling headphone perfectly supports Android and Apple, and can also be charged wirelessly. It is priced at only 499 yuan. I believe it will be a new choice for many Apple users and quickly open up the market.