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Nokia profits from sale of $20 Nokia 105

Posted: , by Alan F.

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Nokia profits from sale of $20 Nokia 105
You wouldn't think that much money could be made from selling a $20 phone. But a breakdown of the low-end Nokia 105 by IHS shows that even after paying $14.20 for the materials, components and manufacturing cost, the Finnish handset maker still makes a decent amount of money for each unit sold as the hardware and manufacturing margin works out to 29%. The Nokia 105 is targeted for emerging markets where spending money for the latest touchscreen handset is a luxury. Those countries include Africa, Latin America and India.

The breakdown reveals that a lot of the cost savings on the Nokia 105 is due to Infineon Corp.'s PMB7900. This one chip combines the baseband and RF Tranceiver allowing for it to handle GSM/GPRS functions. Combining all of this on one chip allows Nokia to get away with including only three ICs on the phone. An earlier, similar model called the Nokia 1110 used to have six ICs inside. IHS analyst Wayne Lam sums it up by saying, "This is the fruit of nearly a decade's worth of integration. By riding Moore's law and holding the line on features, Nokia has gone from six discrete integrated circuits (ICs) to just one core device plus two other ICs."

The three integrated circuits in the phone have a cost of $5.25, representing 39% of the cost of materials for the device. The color display, at $2.25, accounts for 17% of the cost of materials. By using a low end display with resolution of 128 x 128, Nokia can keep the price cheap. Besides the FM radio, the phone offers multiple alarm clocks, a speaking clock, battery life of 35 days and a flashlight. The device is also water and dust proof. These lower end models still account for the lion's share of Nokia's business. In the first quarter of this year, the company shipped shipped 5.6 million Lumia products, 500,000 Symbian-based devices and 55.8 million feature phones.

source: FierceWireless (1), (2)

40 Comments
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posted on 29 Jun 2013, 01:45 13

1. xperiaDROID (banned) (Posts: 5629; Member since: 08 Mar 2013)


That's it! Shut up and take my money! lol

posted on 29 Jun 2013, 03:00 4

10. haseebzahid (Posts: 1853; Member since: 22 Feb 2012)


lol how much will you carry of these phones altest a dozen with 450$

posted on 29 Jun 2013, 06:02 14

23. Boreni (banned) (Posts: 28; Member since: 22 Feb 2013)


450/20=22.5-->20

"Those countries include Africa, Latin America and India."
India is a country but Africa and Latin America are not countries!
Alan F, You missed the lessons in geography? ;)

posted on 29 Jun 2013, 08:28 9

26. raunak (Posts: 507; Member since: 12 Oct 2011)


You should be happy. I was surprised he knew the world didn't end at america's borders.

posted on 29 Jun 2013, 09:02 1

28. Boreni (banned) (Posts: 28; Member since: 22 Feb 2013)


I thought they are located in Europe.
You know how they make a living?
I do not see an commercial and such on this site.

posted on 29 Jun 2013, 09:30

29. raunak (Posts: 507; Member since: 12 Oct 2011)


You don't see ads probably because you browse on mobile site.

posted on 29 Jun 2013, 10:32

30. Boreni (banned) (Posts: 28; Member since: 22 Feb 2013)


No, i browse on PC.

posted on 29 Jun 2013, 12:01

31. raunak (Posts: 507; Member since: 12 Oct 2011)


Which country are you from?

posted on 29 Jun 2013, 17:01

34. Boreni (banned) (Posts: 28; Member since: 22 Feb 2013)


Israel

posted on 01 Jul 2013, 04:17

40. SonyXperiaNexus (Posts: 374; Member since: 01 Oct 2012)


you must have installed adblock or something. i dont see ads anymore coz i did that myself

posted on 29 Jun 2013, 12:28

32. ash29 (Posts: 58; Member since: 28 Oct 2011)


Good catch

posted on 29 Jun 2013, 12:44

33. haseebzahid (Posts: 1853; Member since: 22 Feb 2012)


:O wao that more than a dozen

posted on 29 Jun 2013, 01:58 20

2. dan86 (Posts: 298; Member since: 17 Mar 2012)


Low end models still rock, because few people belive that a person should be smart rather his phone.

posted on 29 Jun 2013, 02:01 12

3. raunak (Posts: 507; Member since: 12 Oct 2011)


This is a must have emergency phone.

posted on 29 Jun 2013, 03:28

14. quyenqchau0813 (unregistered)


I heard this phone only have two GSM bands
and it cannot work in U.S. T_T

posted on 29 Jun 2013, 02:05 11

4. Potato. (banned) (Posts: 607; Member since: 14 Jun 2013)


Nokia 105 review? :D

posted on 29 Jun 2013, 02:15 1

5. KiranPAUSER (Posts: 73; Member since: 15 Feb 2013)


Great one still making profit. I heard lumia 520 has almost zero profit!

posted on 29 Jun 2013, 19:46

35. cdgoin (Posts: 538; Member since: 28 Jul 2010)


Actually rumor has it the 521 due to similar efficiencies actually has a larger profit % than the 920 or 925, when you add the MS subsidy.

posted on 29 Jun 2013, 02:31 1

6. Penny (Posts: 1653; Member since: 04 Feb 2011)


Wow, that is cheap. Can't imagine building out a downstream for such efficient production and distribution.

posted on 29 Jun 2013, 02:39 2

7. livyatan (Posts: 867; Member since: 19 Jun 2013)


Brilliant product

posted on 29 Jun 2013, 02:53 3

8. EXkurogane (Posts: 863; Member since: 07 Mar 2013)


Efficient manufacturing and cost saving.

posted on 29 Jun 2013, 02:57 3

9. sampath.soundappan (Posts: 2; Member since: 29 Jun 2013)


The Nokia 105 is definitely a bang for the buck. Just purchased a black one two days back and I am amazed by the quality and feel of the phone. Very nice keypad and excellent battery backup.

posted on 29 Jun 2013, 03:04 8

11. cheeseycheeser (Posts: 413; Member since: 24 Mar 2011)


Last I checked Africa and Latin America weren't countries! ;)

posted on 29 Jun 2013, 03:07 4

12. ilia1986 (unregistered)


I wonder what's the Antutu score for this beast.. :D

posted on 29 Jun 2013, 03:15 3

13. pyradark (Posts: 864; Member since: 10 Jun 2012)


Inifinite. It doesnt crash compare to smartphone

posted on 29 Jun 2013, 03:42 3

15. Jason2k13 (Posts: 1216; Member since: 28 Mar 2013)


can someone tell me if this phone lags on modern combat 3?

posted on 29 Jun 2013, 04:00 5

16. iushnt (Posts: 1785; Member since: 06 Feb 2013)


No this phone doesn't lag..this phone doesn't accept those apps and games which can create lags..thats why this phone is smooth

posted on 29 Jun 2013, 04:05 5

17. raunak (Posts: 507; Member since: 12 Oct 2011)


Should not. I tried crysis 3. Gave me 40 fps at medium settings.

posted on 29 Jun 2013, 05:08 3

20. SonyXperiaNexus (Posts: 374; Member since: 01 Oct 2012)


b!tch plz. it gives 200fps on snakes which is better than crysis 3

posted on 29 Jun 2013, 05:01

19. SonyXperiaNexus (Posts: 374; Member since: 01 Oct 2012)


it cant run modern combat 3 (coz nokia doesnt allow it that is) but its battery was enough to power my laptop for 12 hours which does.

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