iPhone 4S parts costs compared against Nokia Lumia 900 highlights Apple’s profit margins
By Nigel Chew
01 June 2012 – A report by iSuppli showed that although the iPhone 4S is priecier than the Lumia 900, Apple actually pays less per part than Nokia does. The biggest individual price difference lies in their respective displays displays; Apple pays USD 37 for theirs, Nokia pays USD 58. To sum it up, Apple pays USD 190 in parts, while Nokia pays USD 209, which leads to Nokia making a USD 241 margin per device, and Apple making USD 459.
In hindsight, Apple has agreements in place with manufacturers considering the massive scale of their orders, while the Lumia 900 has a bigger screen and an LTE antenna to pay for. Either way, when it comes to cost on per-device basis, it is no surprise that Apple is swimming in money. Still, one would think that Nokia being big timers in the business would mean they would know how to find methods to enjoy economies of scale through production.
Source: The Wall Street Journal