Report: Lumia 900 costs $217 in parts and labor

Nokia's Lumia 900 is the flagship smartphone for both the Lumia lineup and also for Windows Phone itself. But how much is the device worth in terms of its parts and labor? A new study by iSuppli claims, based on a teardown of the device, that the Lumia 900 costs $209 in parts. The report adds in an extra $8 to cover the cost of labor for each smartphone, making the final hardware cost of the Lumia 900 $217.

The cost for buying a Lumia 900 without a long term contract is $449.50, according to the report. However, it adds that its numbers are preliminary; some additional costs like licensing, software, and royalties have not been figured into their initial results.

The report also compares the Lumia 900 to an Android-based smartphone, the Samsung Galaxy S II Skyrocket. The Lumia 900 has a single core APQ8055 processor made by Qualcomm. However, the phone is still competitive even against smartphones with dual-core processors in terms of performance. The S II Skyrocket, which uses Qualcomm’s dual core APQ8060 processor, costs $5 more than the Lumia 900's processor.

The Lumia 900 also only has 512 MB of memory, which also makes the phone cheaper compared to other Android-based phones with more memory. iSuppli's Wayne Lamb states, "This expands the addressable market for Windows Phone 7.5 devices, allowing Nokia and Microsoft to compete in the low-cost smartphone market now dominated by Android."

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I think the Nokia N9 costs $300 in parts and labour due to the 1GB RAM, NFC, etc etc.
And then the OS probably cost them a fortune seeing as it was for a single device.

Nice profit margin there. It's not surprising really - the Lumia is using 2010 hardware and selling at 2012 prices. Single core processor, only 512mb ram, and low resolution screens. That must save Nokia a bucket load of cash in production.

simplezz said,
Nice profit margin there. It's not surprising really - the Lumia is using 2010 hardware and selling at 2012 prices. Single core processor, only 512mb ram, and low resolution screens. That must save Nokia a bucket load of cash in production.

Still costs more than an iPhone 4s (because of the screen actually)

simplezz said,
Nice profit margin there. It's not surprising really - the Lumia is using 2010 hardware and selling at 2012 prices. Single core processor, only 512mb ram, and low resolution screens. That must save Nokia a bucket load of cash in production.

But it has 2012 software unlike Android which is power hungry.

Gaffney said,

But it has 2012 software unlike Android which is power hungry.

huh? If I am not mistaken, the new iPad has a quad core processor and the new iPhone have dual core processors as well. This has nothing to do with being powe hungry...rather that the OS is optimized better on WP. And eventually, I am sure WP will have dual core/quad core processors as well.

techbeck said,

huh? If I am not mistaken, the new iPad has a quad core processor and the new iPhone have dual core processors as well. This has nothing to do with being powe hungry...rather that the OS is optimized better on WP. And eventually, I am sure WP will have dual core/quad core processors as well.


iPad is only dual core CPU with quad core GPU. Either way, Android is NOT optimized for battery life and hasn't been. The way it's set up doesn't allow it to be. I really don't miss my days with Android and always having to worry about battery life.

bangbang023 said,

iPad is only dual core CPU with quad core GPU. Either way, Android is NOT optimized for battery life and hasn't been. The way it's set up doesn't allow it to be. I really don't miss my days with Android and always having to worry about battery life.

My battery life lasts me from 7a to 12am no problem. And if I choose to install a custom ROM/kernel...I can get even more.

techbeck said,

My battery life lasts me from 7a to 12am no problem. And if I choose to install a custom ROM/kernel...I can get even more.

I am sorry, Are you touting 5hour batterry life as a good thing?

mr lefleur said,

I am sorry, Are you touting 5hour batterry life as a good thing?

12 AM....not 12 PM. So no, I am not touting 5hr battery life. More like 17hrs battery life. 7AM - 12AM

techbeck said,
My battery life lasts me from 7a to 12am no problem. And if I choose to install a custom ROM/kernel...I can get even more.

Wow, a whole day of usage!

That really makes me envious, oh wait it doesn't - since I last charged my phone LAST WEEKEND.

MiukuMac said,
since I last charged my phone LAST WEEKEND.

Which means jack unless you state what phone you have. Myself, I am running the GNEX.

AnarKhy said,
So lumia 900 is a cheap phone charged as a top class device.

Not really, it's not unsurprising that a device has a 100% markup over cost of manufacture. There are other considerations you have to make such as reseller profit, patents, shipping, marketing, R&D, software development and licencing, employee pay (this only has labour costs for assembly) shareholder considerations and more

To give you a good comparison, the iPhone 4s (16GB model) costs $188 to build (less than this!) but retails for about the same

Sraf said,

Not really, it's not unsurprising that a device has a 100% markup over cost of manufacture. There are other considerations you have to make such as reseller profit, patents, shipping, marketing, R&D, software development and licencing, employee pay (this only has labour costs for assembly) shareholder considerations and more

To give you a good comparison, the iPhone 4s (16GB model) costs $188 to build (less than this!) but retails for about the same


The iPhone retails for $649 how is it about the same?

waqastariq said,

The iPhone retails for $649 how is it about the same?

Alright fine, the iPhone costs less to make AND costs more at retail, doesn't really invalidate my point

Love the way that the UK gets a straight swap from $ to £ so they have an even greater profit.

$217.00 = £136 and sold for £450-500

b_roca said,
Love the way that the UK gets a straight swap from $ to £ so they have an even greater profit.

$217.00 = £136 and sold for £450-500


Does that include the VAT though?

These articles annoy me OK tech gadgets are over priced but we keep buying. Companies need to make a profit and R&D is never factored into OMG it's only worth $100 posts.

Redz0ne said,
These articles annoy me OK tech gadgets are over priced but we keep buying. Companies need to make a profit and R&D is never factored into OMG it's only worth $100 posts.

Yep. It's not Christmas! Companies have bills and are in the business of making money for their shareholders.

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