nokia-profit-margnThey say that you enter into a business in order to make money, and preferably, a handsome profit along the way. To not do so or achieve that would mean you are running a charity instead. Well, it does boggle the mind that the profit margins of Nokia’s Windows Phone 8-powered Lumia smartphones are similar to that of their entry level featurephone known as the Nokia 105 which target emerging markets and Third World countries. The price difference between both handsets cannot be any more stark – the Nokia Lumia range costs hundreds of dollars unlocked, but the Nokia 105 costs just $26.


This stunning bit of information was shared by Nokia’s China Platform and Technology R&D director Jun Wang, after he was asked on how Nokia is able to hold out hope that they can turn a profit by pricing a handset at such low levels. The whole idea of making such featurephones and selling them cheap while reaping a profit is to play the numbers game – simply be shipping the devices in high volumes while keeping one’s fingers crossed that it will do well internationally.

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