Report: Lumia 900 costs $217 in parts and labor

April 11, 2012

A new report from iSuppli claims that each unit of Nokia's Lumia 900 smartphone cost a total of $217 in both parts and labor, compared to the phone's non-contract retail price of $449.90.

Nokia's Lumia 900 is the flagship smartphone for both the Lumia lineup and also for Windows Phone itself. But how much is the device worth in terms of its parts and labor? A new study by iSuppli claims, based on a teardown of the device, that the Lumia 900 costs $209 in parts. The report adds in an extra $8 to cover the cost of labor for each smartphone, making the final hardware cost of the Lumia 900 $217.

The cost for buying a Lumia 900 without a long term contract is $449.50, according to the report. However, it adds that its numbers are preliminary; some additional costs like licensing, software, and royalties have not been figured into their initial results.

The report also compares the Lumia 900 to an Android-based smartphone, the Samsung Galaxy S II Skyrocket. The Lumia 900 has a single core APQ8055 processor made by Qualcomm. However, the phone is still competitive even against smartphones with dual-core processors in terms of performance. The S II Skyrocket, which uses Qualcomm’s dual core APQ8060 processor, costs $5 more than the Lumia 900's processor.

The Lumia 900 also only has 512 MB of memory, which also makes the phone cheaper compared to other Android-based phones with more memory. iSuppli's Wayne Lamb states, "This expands the addressable market for Windows Phone 7.5 devices, allowing Nokia and Microsoft to compete in the low-cost smartphone market now dominated by Android."

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