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19

The cost of building a Nokia Lumia 900

Nokia Lumia 900 costs $217 to build

Ever wonder how much it cost to build a Nokia Lumia 900 Windows Phone? According to IHS iSuppli Research, the Lumia 900's bill of materials totals $209. This includes the cost of the memory ($27), touchscreen ($58), processor ($17), cameras ($18), and box contents ($5.50).  The screen is the top dollar item due to the ClearBlack technology and Gorilla Glass.

Lumia 900 parts cost

Toss in the $8 manufacturing cost and the cost to produce the Lumia 900 moves up to $217. Retail pricing is at $449.99 (without contractual discounts) giving Nokia $232.99 in profit to help cover salaries, research and development, licensing, marketing and other expenses. In comparison, the iPhone 4S has a materials cost of $188 and a retail price of $650. The Samsung SII Android Phone costs $235.50 in materials and is sold for $549.99.

Nokia has done a good job partnering with Microsoft and Qualcomm to keep the costs down while passing on the savings to its customers.

source: isuppli via: monwindowsphone, thanks, Gilles, for the tip!

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Comments

There are 19 comments. Sign in to comment

Dorknight says:

Look at how much Apple charges for profit... What a bunch of stuck up snobs...

xpxp2002 says:

Sadly, it's not just Apple. Look at the cost of the battery. $5 or less for both devices, yet if you had to buy a battery outright it would cost at least $30, and probably closer to $40.

pressstart says:

If you buy at the volume they do, you can get the comparable rates they do.

Jeff Kibuule says:

Honestly, I don't know of any other OEM that orders parts by the tens of millions. That's why they get "cheap" prices. They order a TON of them since they'll be in products for the next 3 or so years.
 
People also need to realize that the cost of a part also includes the manufacturing cost OF that part as well. When you don't need to retool a machine and use it constantly for 3 years (the lifetime of a phone design), parts become ridiculously cheap over time.

Come on now 30$ for a battery? have u ever heard of Amazon did u eat paint chips as a child u ten pound water head lol

U_D says:

Any licensing costs for the OS?

Jeff Kibuule says:

No, which makes these comparisons silly. Nokia has to pay Microsoft for a Windows Phone license just like Samsung needs to pay its developers who create the TouchWiz skin and associated apps (that stuff doesn't come out of thin air). These comparisons never take into account how much it costs for software development, which is why I find them bogus in what they are often used to imply.

SauX64 says:

don't forget that samsung also pays microsoft for every android phone sold.

Yes, Nokia pays Microsoft for a Windows Phone licence, but Microsoft pays Nokia platform support on estimate $1 billion a year for being exclusively only on WP.
 
http://www.theverge.com/2012/1/26/2736132/microsoft-nokia-250-million-pl...
 
Also, Apple has to make some royalty payments to Nokia. Apple sold 50 million iPhones and iPads on Q1/2012, so that makes $250 million in royalty fees. If Apple keeps up the good work, the royalty fee will be $1 billion by the end of year 2012
 
http://www.macrumors.com/2011/06/14/apples-royalty-payments-to-nokia-est...

Shoftiel says:

Isn't there also packaging, shipping and marketing among other cost? I would think that all eats into the profits and At&t is selling the lumia 900 for 99 dollars? Even on contract that is cheap.

TPM50 says:

That's why you bitch about the cost of your phone bill. They make their money back over the course of the contract.

Hiiiiiiiii says:

And years of RnD

HD7guy says:

I would happily pay a few bucks more for 32 GB or 64 GB.

blamattack says:

This makes me happy that I ordered my 900 off contract. $350 after the $100 Nokia credit is a steel. Now I still have my upgrade for when wp8 phones come out. im guessing high rez screens, and multicore processors will drive the price up.

Maybe not. IPhone 4s, which has a multicore processor AND a high-rez screen costs $29 less to produce than the 900...

Ever heard of Economies of Scale? Apple is having that as so many people are using the iPhone, it can get even more discounts for the components.
Nokia at $209 is already pretty cheap considering the lack of volume invovled.

DavidinCT says:

So, it cost $27 for the memory. So really, how much more would it of cost to put 32gb in it...

gregoron says:

The cost of having more memory to store cute pictures of your child: priceless.