Sunday, 10 June 2012

Nokia Lumia 900 Costs More To Build Than Apple iPhone 4S, But The Latter Makes More Profit

Nokia’s flagship Windows Phone device, the Lumia 900, has been everywhere and the company has tried really hard to make it a success. It has succeeded to an extent, but Nokia is still in a bad shape and they’re losing a lot of cash as I write this. Even with the Lumia 900, they’re not making that much of a profit.

iSuppli performed a research on the production cost for both the Nokia Lumia 900 and the iPhone 4S. According to the report, the Lumia 900 costs more to produce than the iPhone 4S, but sells for a cheaper price. It costs $209 for Nokia to make the Lumia 900, whereas it costs $190 to produce the iPhone. The former sells its device for $450 making a profit of $241, whereas the latter makes $459 off its $649 selling price. That alone shows that Apple is making a lot more profit than Nokia, they also sell a lot more devices.



So basically, Nokia spends more and gains less, amazing strategy I must say. The company has been falling behind ever since the giants Apple and Google’s Android powered device started running the mobile industry. Nokia decided to go with Microsoft’s Windows Phone 7 OS, which is still much behind iOS and Android in terms of features, functionality etc. Do you think Nokia will get back its previous glory?

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