Nokia Lumia 900 and iPhone 4S component costs compared – Apple’s margins are huge!

It’s no secret that Apple makes a lot of money. In fact, it makes up a disproportionate amount of profit compared to all the other phone manufacturers. The image above shows how. Nokia’s latest and greatest Windows Phone running smartphone’s parts cost the Finnish giant around $209. The iPhone 4S’ parts compared look decidedly cheap, coming in at $190. But, when it comes to selling the devices to the public, Apple charges $649, making a huge $459 profit on one handset. The Lumia sells for $450, making $241.

There are many factors as to why and how the price points have been set this way. Firstly, the iPhone is produced in massive scale, meaning Apple can negotiate really good prices on all its parts. Cupertino has often – in the past – also hashed out exclusive deals for technology not seen on older devices. It has massive buying power, and companies will fall over themselves just to get an insignificant component placed on the iconic smartphone’s circuit boards. On the other hand, Nokia is nowhere near as popular as Apple in the smartphone market, and it’s running a platform which hasn’t yet been fully embraced by consumers. That means it produces fewer handsets, and pays more for components that Apple can get cheaper.

If Windows Phone and Nokia’s deal can improve the traction of both in the market, there’s no reason why the Lumia parts won’t be purchased at lower prices. As for now though, all most manufacturers can do is sit back and gawp in disbelief at how successful Apple is.

Via: iMore

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  • boom1234

    Just shows how overpriced things really are.

  • JohnRobertPeters

    I thought that Nokia was the biggest seller of phones in the world…

  • TiP_Cam

     @JohnRobertPeters Samsung sells the most mobile phones, Nokia is number 2. Apple takes home about 70% of the profits though. 

  • KevinGautreau

    Yup that’s a huge margin. But you’re not just paying for the phone — it’s the iOS, the iTunes/Apple ecosystem. That said, it is still pretty overpriced. But people will still dish out the cash! Heck, I’ll be getting the 5 when it comes out.

  • PrestonTiegs

     @KevinGautreau So you are paying for an ecosystem that makes you pay for once you get it? 

  • TheOneandOnlyAnonymouse

     @PrestonTiegs ha, I love this. People always talk about the apple ecosystem and how good it is, but its just good at getting cash out of you. Don’t want the latest family guy episode on Hulu for free, pay apple for it. Dont spend 2.49 from amazon for that album, get it from apple for 4.99. Dont pay 1.99 for that app on android, get it on apple for 4.79. lol

  • TheOneandOnlyAnonymouse

     @TiP_Cam I find it funny how you talk about buying power and getting components for cheaper, when most of the components and listings show apple paying more for a part, save for a few pieces, than nokia. 2 cheaper parts for nokia, one breaking even, and 3 more expensive for nokia, but obviously the screen is bigger and better and more expensive because of it. So I call it a wash sooner than I would say apple has better buying power. Afterall, there are actually companies that refuse to have anything to do with apple because of apples demands for control and because of apple’s track record for bad behavior like lawsuits and false advertising. 

  • AlbertoGarcia

    Apple is just looking out for itself and only wants money from you and the Nokia windows phone cheap to buy ,but made with better parts than iphone,Because its people friendly phone and not a money hungry phone like iphone. Just ask siri What is the best smartphone in the world….and it will say the NOkia Lumia 900.  Oh wait apple caught on already and modified/Forced siri to say iphone4s…..Apple…What a JOKE.

  • LV2355

    Stupid prices. Knowing this and still buying the phone makes you stupid.

  • PrestonTiegs

     @LV2355 Not that I would buy an iphone now, because of how good the competition has become, you cant be mad at them for the prices. Its the same price as every other phone on the market. Its just good buisness. If people will pay that much for it, why not charge that much for it? Now the real question, is why do they charge us $100 for every memory upgrade…
     

  • SergioJaneiro

     @AlbertoGarcia You obviously did NOT read the article completely. Read it over before you make an ignorant comment. Siri pulls its information from a website, not apple. Why wouldn’t they modify it? It’s their product..