Nokia Lumia 900 Cost Teardown

Aren’t we hearing a lot of Nokia Lumia 900 these days? Nokia, AT&T and Microsoft have embarked on a mega promotional plan for the latest member of the Nokia Lumia family as this is the best chance for Nokia-Microsoft to strengthen their hold in the world of smartphones. With Nicki Minaj dancing at Times Square for the Lumia 900 launch to AT&T offering crazy deals to customers ($19 a year), the Lumia 900 is the most talked about smartphone at the moment.

We have already seen a cost teardown of the New iPad yesterday and of the iPhone 4S earlier. Today let us see how much the Nokia Lumia 900 really costs.

A Nokia Lumia 900 costs around US$ 450 in the market without a service contract, which for some may be rather expensive, given the wide range of available smartphones at much cheaper prices. But with Windows Phone getting appreciation from almost all quarters and Nokia playing it high, customers do not mind shelling out those kind of bucks to procure a Lumia 900 device. But let us find out the actual cost of manufacturing a Nokia Lumia 900.

The Lumia 900 carries a Bill of Materials (BOM) of $209, according to a report by iSuppli. When the $8.00 manufacturing cost is added in, the cost to produce the Lumia 900 rises to $217. 

Here is the breakdown table which clearly marks the cost of the hardware component against it:

The final cost of the Nokia Lumia 900 device after the breakdown is $217 which is less than half of the retail price of around $450.  The BOM price is of course excluding the various other costs like software, distribution, promotion etc.

With the Lumia 900, Nokia, Microsoft and Qualcomm have taken a page from Apple Inc.’s playbook by closely tying together the hardware and software to produce a full-featured smartphone that is based on relatively inexpensive electronic components.it, we ain’t stopping you from buying it. We just thought of sharing this bit of information, like we did about the New iPad and iPhone 4S earlier.

The Lumia 900 represents a make-or-break effort by Nokia and Microsoft to re-establish their foothold in the smartphone business – and we do hope that they succeed.