How to Decide Whether Price is a Good Value

How to value custom Android hardware

I like having an expectation of price when buying something.  You probably do, too.  An expectation makes judging value easier.  Human nature has something to do with this.  It’s clear if some products are priced fairly or not.  For example commodities like gasoline or bananas.  Quality of common grades of gas or breeds of bananas don’t vary greatly between different sellers.  Therefore pricing shouldn’t vary greatly either.  Many products we routinely buy, whether for personal or business use, fall into this category for the most part.

The closer a product gets to the customer the more potential for adding value.  This seems to apply universally, from custom Android projects to dinner.  On one end of the food spectrum is something simple, cheap, and low quality, but edible, like instant noodles.  On the other end is a culinary experience of globally sourced ingredients, prepared to the exact specification of a culinary artist, and served in a majestic environment.  Both fight hunger, albeit are priced very differently.

What justifies the price difference beyond the cost of ingredients?  In the example given above it’s the ambiance, presentation of the food, and taste.  The value customers feel from a high end restaurant experience far exceeds the cost of the actual food.  Buying products follows the same logic.  A mass produced product that is similar to many other products has little added value.  For example, a pair of generic headphones usually costs only slightly more than the seller paid for it themselves.  Customers pay more for branded products, even those that are very similar to an unbranded product.  The higher price comes from the reliability, quality, and sometimes prestige the brand represents.

Not all customers value things the same way.  For some the brand matters, for others they just want the commodity.  The value a custom product manufacturer brings differs from the value a commodity commodity device seller provides.  The custom device manufacturer needs to spend more resources developing the custom device even though the volume is lower for a custom device than a mass market device.  Custom Android device buyers often have niche use cases that deliver a higher value to the end user as well.  More work goes into making a custom product.  That means the product must deliver a higher value to the end user than a commodity product; the same way a dining experience delivers a higher value than instant noodles.

A custom Android tablet.

Most of Hatch’s customers use their custom Android products for business applications.  Their products offer a high value to these businesses and require a manufacturing partner that offers an equally high level of service and knowledge.  If a commodity product breaks the customer simply exchanges it at the retailer.  If a business product breaks that means a company is losing money by not having it work.  Also fixing the problem costs more than exchanging a product at a retailer.  It usually requires a technician to deal with the problem.   Business buyers should look at commodity costs as a clear point of reference.  The art of determining a fair price for the added value comes from quantifying a supplier’s capabilities on one side; and the cost of something going wrong with the project on the other side.

“No one got fired for hiring IBM” is a saying which means that IBM has such a good reputation that an employee would never get fired for hiring them, even if a problem arises.  Many highly skilled companies are small and don’t have the reputation of large competitors.  When evaluating a partner for a custom project, it’s necessary to understand exactly what additional value the partner will bring.  To do this, find out what kind of projects the partner has worked on before.  Ask for referrals from past clients.  Take into consideration how quickly and precisely the partner communicates.  If they offer sensible and clear answers from the beginning that’s a good sign.  If not then don’t expect them to start after paying the deposit.

Up front due diligence requires digging into the details of how businesses operate.  Spending time to get comfortable with a potential partner increases the chances of success for your project.

Tips for a Speedy Custom Android Development

Making a custom product takes time.  Usually, more time than our customers realize as there are never less details, and often more, during a development process.  But through experience we learn optimization techniques that have a big impact.  Below are some concepts you can apply for an efficient, yet reliable development process.

The App

When building a custom Android device, the key to quick development is identifying which parts of the product exist already.  That way you start testing your app on existing devices at an early stage, rather than waiting for your custom hardware.  Start by finding a sample of an existing product which uses the same CPU and Android version as your custom product, these are the foundation of an Android product.  While the existing product and your custom product won’t be exactly the same, the existing product can be used to start testing the basic functionality of your app.  Starting this process early saves time and generally results in a better app.

Special Hardware

To continue with efficient development, it’s necessary to know which components matter and aren’t standard.  Consider the purpose and focus of the product.  This determines what other components are important.  For example, if taking photos or video using a wide-angle camera lens is part of the device requirements, try to get samples of different cameras to test with the chosen CPU to make sure the camera quality is good enough.  We’ve seen the same camera provide different results with different CPUs (better results happened on CPUs with integrated ISP).  Ultimately this motivated a change in the device CPU because the camera quality was such an important feature of the product.

During this stage the hardware doesn’t need any case as the point is quick compatibility testing of the hardware.

Casing

Basic concept is to start prototyping as early as possible.  It’s possible to prototype even before the electronics are ready.  Hatch’s customers usually design the exterior of their product case with an industrial designer (Hatch does the inside, mechanical engineering, part).  Previously we had a customer approve a prototype and then a few months later change their mind regarding part of the external design.  The mass production tooling was already done at that point, so the change ended up costing additional time and money.

Even if the custom Android electronics aren’t done, if case design is very important to a customer, it’s possible to quickly get a simple PCB made with just case fittings.  For example, a blank PCB with just a USB, earphone, and charging port, rather than all the electronics components, so the customer can test from purely a mechanical and design standpoint.  If that prototype works the same one can be used once the full electronics are done.

Tips for Efficient Custom Development of Android Hardware

When conceptualizing a customized Android device, the 3 main areas to focus on are casing (mechanics), electronics, and firmware. Other aspects may include accessories and packaging (depending on business model), to name a few, but this article focuses specifically on the Android device itself.  Key factors within each area affect the development cost and time and unit cost. Understanding what impact different factors have enables a more efficient and beautiful development process. Read on for a summary of key details that matter in custom Android development.

Casing

Casing is unique as it incorporates two different disciplines of design; external and internal design.  Usually called Industrial Design and Mechanical Engineering, respectively.  If good looking external design isn’t a key aspect for your custom Android hardware then using just a mechanical engineer for both should be fine.  Many mechanical engineers mistake themselves for industrial designers anyway.  Usually external design means less for products that users don’t see or are purely functional in nature.  For the sake of this article we’ll look at the best way to approach a product where design matters.

External design, unlike all the other areas covered here, is exclusively based on perception and emotion.  Intricate details affect branding, perception, and usability.  Hatch highly encourages our customers to work directly with an industrial designer (rather than through Hatch or any other final product supplier) on the case’s external design for the highest quality results.  Hatch will provide the dimensions and other relevant information to support the designer.  To allow a smooth transition to the mechanical designer, the industrial designer should define gap tolerances between the parts of casing, exact colors, and materials.  Usually industrial designers do a good job on the latter two, but making the case fit perfectly can take a lot of time.  Having this requirement from the beginning gives a clear goal, allowing a supplier to test internally before sending to the client.

It’s best to use a mechanical engineer with product specific experience to create the mechanical design.  That’s why Hatch takes control of mechanical design once external design is finished.  Hatch’s mechanical designers have made and modified hundreds of Android devices like tablets, phones, and custom hardware.   Without start to finish product specific experience even a very qualified mechanical engineer won’t foresee product specific design nuances.  Those nuances are related to finished product quality and, through support of supply chain partners, component selection.

Only through seeing multiple products go from start to finish do hidden design optimizations become clear; this is the definition of experience.  For example structures within the mechanical design to strengthen ports or block dust from entering the screen area.  Sometimes ‘the perfect’ design requires an expensive or difficult to source component.  That must be avoided (and there’s no such thing as perfect design).  Collaboration between Hatch’s experienced engineering team and a client’s mechanical designer combines the best of both worlds.  This has a higher cost for the client and maybe overkill, but certainly covers all bases.

Simple takeaways:

  1. Make sure your industrial designer specifies gap tolerances between parts of casing.
  2. Use a mechanical engineer with Android device experience for expertise with quality manufacturing details.
  3. Have the mechanical engineer work with a supply chain partner (like Hatch) to verify that the components suggested by the industrial designer are easy enough to obtain now and into the foreseeable future.

Electronics

All projects have specific performance requirements that call for different kinds of electronics.  Potential for remorse comes when choosing commodity components like a screen or battery, designing around that, and then finding out that the screen isn’t crisp enough or the battery doesn’t last long enough.  When customizing an Android device choose components individually, by testing them in other devices first.  If there’s a screen you’re considering then get a sample of another device that uses the same screen to see if you like it.  Once you decide on all the key components then make an initial prototype to check that they work well together.

As much as possible stay within the framework of the CPU manufacturer’s reference design.  Clients have asked for a certain Bluetooth chip that’s not included in the reference design.  A change like this requires changing the tried and true reference design.  This change opens the door for new bugs.  It also takes a lot of engineering to make this modification.  Changing the reference design usually comes with a high development cost and higher mass production risk.

Simple takeaways:

  1. Sample key components individually in existing products before deciding on the final list.
  2. Test a prototype that integrates those chosen components before making mold.
  3. Stay within reference design; changing it opens the door to unpredictable problems.

Firmware

A combination of knowing the result you want from customized Android firmware and clarifying what customizations are possible at the onset of a project sets the stage for smooth development.  The key here is to ask specific questions to the right people so you get reliable answers.  Many Chinese suppliers hire inexperienced sales people based on their young age and English ability.  Young means they’re cheaper and English means they can serve as a conduit of information to the customer.  Oftentimes the answers these people give customers are incomplete or just wrong.

Hatch uses direct connections with IC companies and their licensed engineering companies to directly access management level engineers.  While the engineers don’t usually speak English that’s not a problem and we’re usually able to get real answers about implementing complicated customizations.  Like proper directions before a new journey, knowing whether the customizations you want are feasible avoids going in the wrong direction.

Simple takeaways:

  1. Clear definition of what’s needed before starting the project.
  2. Find the right person to confirm feasibility of customizations saves losing time going in the wrong direction.

Any project that tackles the unknown is prone to risk and surprise.  Applying the takeaways, learned through first hand experience, listed above when approaching the project will maximize reliability while intelligently managing risk.

Developing an Android Phone with Global Coverage

In the early days of mobile phones, a single phone could be used around the world relatively easily.  In the 2G era the whole world used a total of 4 bands so a ‘quad band phone’ could support voice and (where available) data services anywhere.  Newer generations of cellular technology got more complicated with different mobile networks choosing different wireless protocols and frequencies to operate on.  As a phone’s compatibility with more networks increases so does the complexity of electrical engineering.

It became more difficult for phones to provide global coverage on networks starting with 3G.  As the presence of IoT connectivity and custom Android devices grows Hatch shares what to consider when designing a phone for optimal global coverage.

Generations of Wireless Telecom Protocols

The 2G network uses the GSM standard.  4 frequencies 850, 900, 1800, and 1900MHz covered all the world’s main markets.  Most phones only supported dual bands, but it was easy to find quad band options also.

3G introduced incompatible network standards.  Phones that were built for UMTS often didn’t support CDMA.  Plus within each of the different 3G networks there were at least 5-6 different frequencies.  Only a few high end phones provided global coverage on 3G.  Generally more expensive phones and telecom devices support a wider range of frequencies than lower cost ones.

4G also introduced incompatible networks, but the LTE network had much better coverage than the competing WiMax technology.  Across the world there are over 10 commercially used frequencies on the LTE network.  More than most phones can support.

5G looks to keep things more simple.  The 5G NR (New Radio) network has been introduced in a handful of countries and doesn’t appear to have any rival standards, although there are over 15 different frequencies on this network.

Decommissioning of Older Networks

In many countries legacy 2G and 3G networks are shutting down.  Mobile networks try to move subscribers to the newer networks so they can cut the costs of maintaining older networks.

Backwards Compatibility

Phones with the newest wireless technology are backwards compatible.  That means the newest phone which supports 5G will also support 2G, 3G, and 4G (wherever those networks exist).

New Network Benefit

Newer wireless standards, like 5G, are great for quickly consuming tons of data.  Older generations offer slower data rates.  Mobile users who want to stream high res movies or play graphics rich video games have the best user experience on 5G, but for many IoT or lower data use cases even 2G sufficies.

Designing a Global Android Telecom Device

If you’re making a custom Android telecom device to use globally the key details to consider in regards to choosing frequencies are outlined below, based on the information provided above.

First consider the device’s data consumption profile.  If it doesn’t consume a lot, for simple IoT purposes or low data applications, 2G will keep you in business.  Obviously if your application requires more data consumption then 2G may fall short.  Then research which networks your SIM card will roam on in different countries where the device will be used.  The roaming networks are determined by the roaming agreements of the original SIM card provider.

Next check whether the countries where the device will be used still have 2G (or 3G) networks. Information about countries sunsetting 2G and 3G networks is easy to find on Wikipedia (where information for this article comes from).  Then research which networks your SIM card will roam on in different countries where the device will be used.  The roaming networks are determined by the roaming agreements of the original SIM card provider.  Notice which networks and frequencies overlap the most between different countries based on the carriers your device will use.  What often happens is that not all the bands within one generation (ie, 4G) can be covered by one device.  This happens because so many different frequencies exist around the world.  To overcome this, start to look at which frequencies on other generations (ie, 3G) are most used by the roaming partner networks.  The idea is to aggregate the most overlapping networks in different countries so that the device can work anywhere it needs to on at least one generation (2G, 3G, 4G, or 5G).

Designing a phone with multiple custom ranges of frequencies.

Traditionally the frequency bundles in mobile phones are broken into US, Asia, and EU regions.  In each regional configuration the frequencies are all set to serve that local market for best coverage across all generations.  That’s a different logic than getting as much coverage as possible globally.  Most generic mobile phone suppliers allow the wholesale buyer to choose the regional configuration before manufacturing.  For example if buying phones to use in the US then the buyer would choose US configuration.

When making a custom Android device you can choose which bands the device supports based on your specific needs.  Up to 3 custom configurations can be created, so you don’t need to stick with the traditional US, EU, and Asia configurations.

Looking to the Future

In the world of technology having common standards sometimes works better than having options.  There are varied reasons for the existence of competing standards, however financial interests probably have the biggest impact.  Whatever new roads appear as you pursue making a custom Android device, Hatch is there to help navigate them. 🙂

Mature vs Immature Supply Chains in Custom Android Device Manufacturing

 

What supply chain means

In this article ‘supply chain’ refers to all the contributors of components or services that go into manufacturing a finished product.  More specifically, in the case of custom Android manufacturing, that means suppliers of hardware such as screens, PCBA, cameras, cases, etc.  Also different specialized service providers such as electronics, mechanics, software, and assembly engineers.  General services, such as logistics, which aren’t specific to Android hardware are not covered in this article.

What’s a mature supply chain?

Supply chains become mature when multiple suppliers gain expertise and compete on individual pieces of the supply chain.  A supply chain consists of many different elements so when there are many companies competing in one niche of the supply chain, over time that creates optimal service and price (theoretically).  For example there are hundreds of companies that design and produce plastic cases for electronics around Shenzhen.  Several of them are particularly focused on designing cases specifically for Android tablets or smartphones.  There are so many case suppliers and so much demand for Android device cases, some case suppliers carve a niche by specializing in tablet or smartphone cases.

This creates teams of engineers with specific retained knowledge that apply directly to making Android devices.  Each case company has engineers with experience designing cases for optimal performance and manufacturing efficiency.  For example an experienced mechanical engineer designs the camera slot in a way to ensure the camera easily snaps into place, blocks light from the flash, and doesn’t overheat.  They know what works, and have seen many things which don’t, creating a reliable and efficient supply chain.  More experienced component manufacturers working in a supply chain makes that supply chain more mature.

What’s an immature supply chain?

Supply chains are immature when there are limited suppliers with deep (or any) expertise in bringing a finished product to life.  For example when developing a new product, especially taking that product from prototype to mass production, countless surprises and mistakes happen due to inexperience.  It could be that the product was designed by non-Chinese engineers who choose components that are difficult to get in China, necessitating a design modification.  Even for products fully designed in China, components don’t always work well together.  Some materials don’t mix well together for chemical or electrical reasons.  Some components come with different calibrations that require tweaking for consistency during mass production.  Immature supply chains result in surprises that take time to resolve.

Production line staff at factories don’t usually understand the point of the custom modifications as it pertains to the product’s use case.  Because of this sometimes small variations in workmanship have a bigger impact on product performance than the staff realize.  Over time mistakes become lessons, but until that happens the supply chain is immature.

How does a supply chain become mature?

Immature supply chains become mature over time as orders of the finished product increase.  For example when Android tablets first started shipping from local Shenzhen supply chains around the end of 2010 the product quality was low and unit cost was high.  As demand exploded new suppliers entered the supply chain.  Even with these new entrants it took a while to meet demand and have prices start to come down.  Over time the profit margins decreased and maturity of the supply chain evolved.  Once supply caught up with demand they needed to improve product quality and price in order to compete.  Sales volume and, in turn, competition are the key forces that drive a supply chain to maturity.

 

The more orders suppliers produce the more opportunity they have to learn from mistakes.  This drives improvement of their components and, ultimately, the finished Android tablet.  As volumes of Android tablets and smartphones exploded a massive supply ecosystem came into existence.  The same events take place in the creation of supply chains for lower volume products, albeit with relatively fewer participants, as demand is lower.  A large company producing high volumes of a unique product will also create a mature supply chain.  This happens somewhat through brute force rather than purely organic capitalism.  In this case entering the supply chain is more restrictive than with a product anyone can buy since there’s only one customer who chooses the individual suppliers.

How to work with an immature supply chain

It’s necessary to work with an immature supply chain whenever creating a new product or modifying an existing one.  Getting from idea to mass production means going through a learning curve.  Over time production runs become more efficient by identifying and fixing problems. That’s why initial production runs should start with smaller quantities.  Problems are easier and less costly to fix with lower volume.  

In addition to extensive testing with low volumes, having multiple suppliers for high risk parts is also useful to hedge risk.  High risk parts refers to parts that have a higher tendency to go out of production or become difficult to source.  Often a component’s future availability is tough to predict.  From experience, cameras and screens seem to have the highest risk in custom Android devices.

Supplier value in a mature supply chain

Once a supply chain becomes mature so do the buyers.  Experienced retail buyers know what’s important to look for in a supplier.  The supplier traits which matter most in a mature supply chain are quality, speed, price, and reliability.  Because finished products coming from a mature supply chain are so similar to each other there’s rarely room for significant product differentiation.  Strides in innovation are made in small, manufacturing related, baby steps.  Any big technological innovation will not likely come from a manufacturer, at least not for Android products.

How an immature supply chain is helped by a mature supply chain

If you want to make a custom Android product your development and manufacturing partner, such as Hatch, plays a big role in leveraging mature supply chains to create custom products. Some suppliers in a mature supply chain are willing to support smaller production runs at a higher margin.  By working with them Hatch leverages the experience and efficiency of the mature supply chain to reliably produce what is needed for the lower volume custom product.

Conclusion

Anytime a new commodity product or product category kicks off a supply chain must be created from scratch.  The initial entrants do what they can to provide a ‘good enough’ early stage product, but as demand for a product grows and more companies enter into the supply chain the quality gets better.  When making something custom leverage mature supply chains to gain a head start.

Whenever working with a new and immature supply chain, go slowly to find problems early.  Reduce risk by thoroughly testing multiple rounds of a trial production and making clear requirements, sometimes even SOPs, for the suppliers to follow.  All mature supply chains start as new and immature ones.  They’re both important at different stages of a product’s lifecycle and through constant intersection help each other to grow.

Best CPUs for Custom Android Tablets Q4 2020

Since the explosion of Android tablets started almost 10 years ago several CPU (central processor unit) manufacturers have come and gone.  In the beginning high profit and high volume drew companies into the space, but as the volume of Wi-Fi Android tablets dropped and competition grew a few clear leaders have emerged.  Those leaders include Rockchip, Mediatek (which also makes CPUs for telecom tablets and smartphones), and Allwinner Tech.  These companies all make chips based on the ARM architecture, so many of their chips compete head to head and are fairly similar in spec and performance.

To keep it simple this article will focus on Rockchip since Hatch routinely uses their CPUs.  The main reason we use more Rockchip is due to flexible customizations (important when making custom Android devices), engineering support, and because we have stronger relationships with Rockchip engineers.  The other companies also make high quality Android CPUs that work for custom projects and we are supportive of using them if our customer requests.

The list below provides information about the leading Rockchip CPUs that are recommended for use in custom Android Wi-Fi devices in order of performance, from high to low end.

RK3399Pro

The RK3399Pro is called a ‘server level’ CPU.  It’s mainly intended for use in applications that demand high performance such as an Edge AI server, industrial applications, client-side facial recognition, and others of this nature.

The CPU contains 6 (hexa) ARM cores, consisting of 2 Cortex-A72 (1.8GHz) and 4 Cortex-A53 (1.5GHz), a NEON coprocessor, Mali T864 GPU, and an NPU.  It can run multiple learning platforms such as Caffe and Tensor Flow.  The RK3399Pro supports multiple display outputs up to 4k resolution and multiple camera inputs up to 13MP. It also has native support for USB type-C protocol.

(Before the RK3399Pro came the RK3399.  The RK3399Pro is the RK3399 with the integration of the RK1808 IC.  The RK1808 provides the NPU (neural network processor unit) mentioned above.)

RK3288

RK3288

The RK3288 is a high end Android CPU that features excellent display support and strong processing power.  This chip is used in a range of consumer, business, and industrial devices.  Many large screen advertising displays use this chip.  Applications include live video streaming with add-on electronics (like temperature sensor), laptops, and access control terminals.

The CPU contains 4 (quad) ARM Cortex-A17 cores that deliver speed up to 1.8GHz and a Mali T764 GPU.  It supports up to 4k display resolution, dual display output, and dual camera up to 13MP (with internal ISP).

RK3368

RK3368

The RK3368 is similar to the RK3288 with slightly lower specs. It still offers excellent multimedia features and does a great job in high level consumer or business applications. The RK3368 is commonly used for educational tablets, TV boxes, advertising displays, and premium tablets.

This CPU has an 8 (octacore) architecture with 8 Cortex-A53 cores that run up to 1.5GHz. It supports up to 4k video HDMI output powered by a PowerVR G6110 GPU. The internal ISP supports 1080p recording and up to 8MP images.

RK3326

RK3326

The RK3326 is a mid-range CPU that has become popular with devices like retail tablets and smart speakers that have moderate performance requirements and need the newest technologies. The chip is a step up from the RK3128 in that it provides faster processing speed and an internal ISP for image processing.

This CPU has a 4 (quad) core Cortex-A35 processor that runs up to 1.5GHz. The Mali-G31MP2 GPU delivers video output up to 1080p resolution. The internal ISP supports video up to 1080p resolution and images up to 8MP.

RK3128

RK3128

The RK3128 is the entry level CPU intended for mass market consumer level devices. Its high volume ensures stable functionality and reliable performance in tablets and TV boxes for lower resolution displays. It’s a solid option for custom Android devices that need long battery life with limited functionality.

This CPU has 4 (quad) Cortex-A7 cores running up to 1.2GHz. It integrates a Mali-400MP2 GPU that provides video output up to 1080p resolution. The CPU also supports cameras with recording up to 1080p and images up to 5MP.


Some CPUs have multiple versions that offer slightly different features.  For example, the RK3128 and RK3126c are exactly the same CPU, but only the RK3128 has HDMI connectivity and supports DDR2.  For products that don’t leverage the full features of a CPU using the ‘cost down’ version (like the RK3126c) saves cost on the BOM (bill of materials).  Once the requirements of a product are clearly defined with a client Hatch will help to accurately identify the most suitable chip to use.