Nokia spends more money on making a Lumia 900 than Apple does on making an iPhone 4S

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Anyone who has ever picked up an iPhone knows how incredibly well built the device is compared to everything else on the market. Sure, the decision to make the back of the iPhone out of glass was a mistake, but barring that … the thing is built like a German tank. The same can be said for many of Nokia’s smartphones, most of which sadly never make their way across the pond. Nokia’s Lumia 900 however, that’s a different story. It started shipping in the United States first, then after a few weeks it’ll arrive on store shelves in Europe. It may not have the best specifications on the market, but that’s more Microsoft’s fault than anything else. Microsoft dictates the hardware specs that you have to use if you want to build a Windows Phone. So with that in mind, how much do you think it costs Nokia to build their latest flagship? According to the folks at iSuppli: $217. How much does Apple spend to make an iPhone 4S? Just $196.

Ouch.

Why do we bother bringing this up? Because half a decade ago it was Nokia who could muscle component suppliers to get the best price. These days, that’s no longer the case. Horace Dediu thinks Apple sold 37.3 million iPhones during the first quarter of this year. Nokia just announced that they sold 12 million smartphones during the same quarter, with 2 million of those being Windows Phones. Assuming Horace is right, that would mean Apple sold more than triple the amount of smartphones that Nokia did. That sort of volume is why Apple can build their phones for less and why Nokia is struggling to make money.

All that being said, Nokia still has an advantage in volume when it comes to feature phones. The 103 that was announced earlier this week does only calls and text messages, but at 16 EUR it’s a bargain!

  • Bea S

    Not only that, but reports say that Nokia spent $150 million on advertising money to promote its Lumia 900.

    Apple spent the same amount, $150 million, in total development costs for the original iPhone and iOS.

    Nokia is pouring money down the drain and getting nowhere. With its numerous bugs (including the data connection bug), and an OS that nobody wants (Windows Phone), the Nokia is going to fail.

    • http://www.intomobile.com/ Stefan Constantinescu

      A) That $150 million number was debunked.

      B) Apple spends wayyy more than Nokia on advertising.

      C) Qualcomm develops the chips Nokia uses. Microsoft develops the software Nokia uses. So tell me, what exactly does Nokia do besides design?

      • Coolwind2099

        Innovation in Electronics, IT and Web Technologies happens so fast it takes only one misstep to get into the shower. Ask Yahoo, AoL, MySpace, Sony and Nokia. I have a feeling there could be a big disrupter coming into play in the next two years and Apple could go for a toss.

  • Henk van der Spek

    Really Stefan: Performance is more than hardware specs only!

    • http://www.intomobile.com/ Stefan Constantinescu

      I’m not talking about the specs in terms of performance. I’m talking about the specs in terms of the age of components. The chips Nokia is using in the Lumia 900 are almost two years old now, except for the 4G LTE modem. That’s new.

      • Henk van der Spek

        Ok, and then Age of components in relation to price etc. Clear now.

  • Anonymous

    Not really a fair comparison.  The iPhone 4S does not support LTE, although it is true that Nokia is using some components that are surprisingly non-cutting edge (like a Single Core SoC).

  • Anonymous

    Not really a fair comparison.  The iPhone 4S does not support LTE, although it is true that Nokia is using some components that are surprisingly non-cutting edge (like a Single Core SoC).

  • http://www.facebook.com/ddreese Don Reese

    I believe you meant to say that it’s built like a Sherman tank. That’s a really old idiom.

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