A teardown analysis by his iSuppli has revealed that after including cost of manufacturing and building the Nokia Lumia 900, the bill of materials came up to $217 which is 46% of the price to buy the device unlocked at $450. While most people will be purchasing the phone on a 2 year contract, the price is still only knocked down by $100 on AT&T or $50 if you get it via Amazon. On top of that, the connectivity glitches that recently surfaced about the device saw Nokia credit users with $100 on their AT&T bill and potential customers will be able to purchase the Nokia Lumia 900 from AT&T on a 2 year contract for free until April 21st.
With the Lumia 900, it seems that Nokia along with Microsoft and Qualcomm have channeled Apple’s form of thinking and closely tied together hardware and software to produce a smartphone that is feature-full, uses relatively inexpensive electronic components and again like Apple, Nokia seems to have been able to intertwine their hardware with the Windows Phone operating system.
While Apple chooses to capitalize on its low hardware costs to achieve large sales margins, Nokia apparently prefers to offer a quality product at an affordable price as its primary weapon for competing. From the teardown analysis incidentally, the most expensive component on the Lumia 900 was the touchscreen display which accounted for $58 of the $217 followed by the wireless section of the device which came up to $38 and memory which was $27. Interestingly, the processor only cost $17.
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