OPPO Watch cost analysis: Japanese components account for more than 80%

We have analyzed the BOM of OPPO Watch, and this time we will analyze the number of components and their cost.

We estimate that the total cost of OPPO Watch is US$64.62 (approximately RMB 456.72), including an assembly fee of US$2. The total cost of the main control is US$28.38, and the main control components account for approximately 48.3% of the total cost.

OPPO Watch contains 736 components, of which 597 are provided by Japan, accounting for 81.1% of the total, the highest proportion in terms of component number and 11.8% of the cost, mainly in the electronic components section.

China provides 108 components, accounting for 14.7% of the total and 37.6% of the cost, the highest proportion of cost, mainly in screens, batteries and non-electronic devices.

The United States provides 25 components, accounting for 3.4% of the total and 43.3% of the cost, mainly in the IC area.

Other countries and regions provide 6 components, accounting for 0.8% of the total and 7.3% of the cost, and the assembly cost is US$2.

We have summarized the top five components of OPPO Watch in terms of cost, including the main chip, screen, memory + flash memory, microcontroller, and Bluetooth chip. The main chip is the most expensive in general smart products. OPPO Watch uses the Snapdragon wear 2500 + Apollo3 dual-chip architecture, and both chips are on the top list of component costs. Next is storage and screen. Smart watches do not require a lot of storage like mobile phones, and OPPO Watch uses a hyperbolic flexible screen, so the cost of the screen exceeds that of memory + flash memory. Finally, there is Qualcomm's highly integrated chip, which integrates wifi, Bluetooth, and FM functions.

After disassembling many mobile phones and smart products, we found that the proportion of Japanese components in the component composition of each product is very high, generally more than 70%, and the highest proportion is nearly 90%. Since the US ban, the domestic call for domestic substitution of parts has been getting louder and louder. American components are generally the most important IC part, while Japanese components are widely distributed, including IC, electronic components, camera sensors, etc. Although the cost is not high, the number is huge. The road to localization is not only to get rid of dependence on the United States, but also on Japan.

However, the advancement of science and technology is closely related to the fierce competition in the market. A monopoly will only slow down technological progress. A rich and diverse supply chain is what smart product manufacturers pursue, and it is also convenient to control costs. We can support domestic supply chain companies, but these companies must also have sufficient strength. For example, companies such as BOE and Goodix Technology have entered the supply chains of many manufacturers with their own technical strength. We hope that the domestic semiconductor industry will accelerate its development, and we will see more and more domestic components in the disassembly of smart products in the future.