Nokia yesterday announced a $100 credit for anyone buying the Lumia 900 between now and April 21, effectively making the device free for users to buy. So how much does it cost the company to produce each unit? According to latest reports, the bill of parts for each phone is nearly $210.
According to IHS iSupply, the Nokia Lumia 900 carries a bill of materials of just $209. IHS reports that a cost-reduced design and close cooperation between Microsoft and Nokia have resulted in a high-end smartphone with relatively low-cost parts and a BOM that is 46 percent of the Lumia 900's off-contract retail price.
"With the Lumia 900, Nokia, Microsoft and Qualcomm have taken a page from Apple Inc.’s playbook by closely tying together the hardware and software to produce a full-featured smartphone that is based on relatively inexpensive electronic components," said Andrew Rassweiler, senior principal analyst, teardown services, at IHS. He later added: "But while Apple capitalizes on its low hardware costs to attain industry-leading margins, Nokia is using this approach to offer an inexpensive phone intended to compete on the basis of price."
iSupply's preliminary analysis highlights the screen as the most expensive component with a $58 price tag. Other costly parts include the wireless section, and the memory. The cheapest part of the phone was the $4.50 battery, and manufacturing cost is thought to add a further $8 to the $209 BOM.
For more on iSupply's tear down, click here.