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Nokia Lumia 900's Parts Cost Nearly $210

By - Source: IHS iSupply | B 11 comments

How much is that Lumia in the window?

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

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  • 8 Hide
    CaedenV , April 13, 2012 2:31 PM
    Not that I generally trust IHS's numbers, but it just goes to show that technology does not have to be expensive to have a fully featured product. This price obviously does not include the costs of design, advertising, and research.
  • 4 Hide
    kyuuketsuki , April 13, 2012 3:09 PM
    Not surprising. It's a great phone, no doubt, but the parts are not bleeding-edge by any measure.
  • 3 Hide
    bystander , April 13, 2012 3:26 PM
    It would have been nice to see some comparisons to other popular phones.
  • 0 Hide
    sanirudh , April 13, 2012 3:44 PM
    I liked the Windows Phone interface. I am not the type to upgrade my phone once or twice a year, so I try to buy a phone which will last.
  • 2 Hide
    tmk221 , April 13, 2012 5:16 PM
    bystanderIt would have been nice to see some comparisons to other popular phones.


    exactly. iPhone specification is always covered in such news
  • 0 Hide
    eddieroolz , April 13, 2012 5:22 PM
    That is quite cheap, I guess.
  • 0 Hide
    bystander , April 13, 2012 5:51 PM
    I seem to have remembered seeing similar costs of a past iPhone, but I don't remember for sure. It may be normal, which is why it would have been nice to see some comparisons.
  • 0 Hide
    Jarmo , April 13, 2012 7:19 PM
    According to isuppli, iphone 4S parts are $188 (as of late last year).
    Not a big deal either way but seems Lumia 900 is a bit more expensive to build.
    http://www.isuppli.com/Teardowns/News/Pages/iPhone-4S-Carries-BOM-of-$188,-IHS-iSuppli-Teardown-Analysis-Reveals.aspx
  • 1 Hide
    bystander , April 13, 2012 10:33 PM
    JarmoAccording to isuppli, iphone 4S parts are $188 (as of late last year).Not a big deal either way but seems Lumia 900 is a bit more expensive to build.http://www.isuppli.com/Teardowns/N [...] veals.aspx


    I find it interesting that their base model doesn't have much profit in it, but adding 16gb of storage cost an extra $100, but cost them $19, and adding 48GB cost the customer an extra $200, but cost them $48.

    The definitely get you with the extras.
  • 0 Hide
    Bloob , April 14, 2012 11:08 AM
    bystanderI find it interesting that their base model doesn't have much profit in it, but adding 16gb of storage cost an extra $100, but cost them $19, and adding 48GB cost the customer an extra $200, but cost them $48.The definitely get you with the extras.

    The base models unsubsided price is around 650$ IIRC, I'd say that's enough profit.
  • 0 Hide
    j3ff86 , April 15, 2012 2:16 AM
    That's fine, since when you buy it for "free", you are paying almost a grand and a half over 2 years.
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