More than an iPhone
Nokia’s new flagship Windows phone apparently costs $217 to build. The BoM stands at $209, with an additional $8 production cost.
The numbers are nothing unusual for a $450 device, but it is interesting to note that Apple spends less on an average iPhone, in spite of the better spec. Various estimates put the iPhone 4S BoM at $188 to $203, but unlike the Lumia, the iPhone features a costly dual-core processor, high res display and more memory.
It all revolves around volumes. Apple simply buys more components and gets a better price, no magic tricks involved, it's simple math.
Looking at the Android world, the Lumia 900 comes in a bit cheaper than the Samsung Galaxy SII Skyrocket, which carries a $236 BoM but also retails for $100 more in the US. Luckily, Nokia is able to squeeze a lot of performance from an underwhelming processor-RAM combo, courtesy of Redmond’s snappy Windows Phone OS.
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