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Nokia N8 costs as much as iPhone 4 to make

updated 12:30 pm EDT, Wed October 13, 2010

Nokia N8 cost matches iPhone despite lower price

Nokia's N8 costs just as much as an iPhone 4 to make despite wildly varying device prices, iSuppli estimated on Wednesday. The two smartphones were in a dead heat as the N8's parts and assembly were put at $187.47, or just four cents lower than Apple's phone. It came even as Nokia used a more advanced 12-megapixel camera, an AMOLED screen and HDMI output.

Analysts saw the differences as a mater of tradeoffs. The N8's display is much lower resolution than Apple's and the industry average at just 640x360, but it's still the most expensive part of the design at $39.25. About 16GB of built-in flash memory cost $37.12, while the camera was nearly as expensive at $31.08 Its slower 680MHz processor helped offset the difference at $22.

The raw manufacturing cost flies in spite of significantly higher unsubsidized prices for the iPhone compared to the N8. Nokia charges $549 for an unlocked, carrier-independent version of the N8 through its site. Contract-free iPhones aren't readily available but have typically sold from $599 for a 16GB model. Without a carrier deal, though, Nokia's device is effectively more expensive as Apple can afford to sell its own for $199 as long as customers agree to a contract.

Reasons for the similar manufacturing costs but different retail prices aren't as clear but are likely to stem from economies of scale and support. Nokia as the world's largest phone manufacturer can potentially charge less. Apple also has its own self-run stores to maintain where Nokia often must turn to resellers. [via Bloomberg]



By Electronista Staff
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Comments

  1. bdmarsh

    Junior Member

    Joined: Feb 2006

    +2

    more advanced 12 MP camera?

    higher megapixel sure, more advanced/higher quality? debatable depending on conditions while taking pictures, especially lower light.

    Rest of the comments about the parts are good though.

  1. yticolev

    Forum Regular

    Joined: May 2002

    +1

    comment title

    Only $50 price difference between a Toyota and a Lexus? Quite a bargain.

  1. Athens

    Addicted to MacNN

    Joined: Jan 2003

    +4

    Support?

    Who has better support, I mean can I call Nokia to fix something on the phone that is a couple days out of warranty? No, Maybe dunno but I have seen more then a few people now get warranty repairs on Apple products just out of warranty out of the good grace of the Apple Store Manager allowing it. I have also had nothing but excellent support from Apple over minor issues over the years as well. At a $50.00 difference and a world of difference in support I argue the iPhone is by far the better deal, thats if support actually means anything to some one.

  1. oakdale62

    Fresh-Faced Recruit

    Joined: Oct 2010

    0

    Da Plane....Da Plane

    Can we get a little bit more crapaganda err!, I mean propaganda!

    The writer must be living on Fantasy Island if he/she thinks you can get an NEW (not use, refurbished or a chinese knockoff) totally unlocked iPhone 4 for $599.00

    Try north of 7 bills.

    You are lucky if you can can get an old one for that price.

  1. iphonerulez

    Dedicated MacNNer

    Joined: Nov 2008

    0

    Unlocked iPhones are as costly as Oakdale62 says..

    http://techpp.com/2010/06/12/buy-factory-unlocked-legally-unlocked-iphone-4-for-cheap-price/

    It's no wonder Apple is making money hand over fist. It speaks volumes about Apple branding.

  1. excursioner

    Fresh-Faced Recruit

    Joined: Apr 2010

    +3

    Nowadays it's all about the software

    You can have the best hardware in the market, but the question is: how can Nokia be in competition with Symbian as their horse? When iOS, WebOS, WindowsMobile, Chrome are years ahead. Seems Nokia is going the way of the dodo with these strategies.

  1. excursioner

    Fresh-Faced Recruit

    Joined: Apr 2010

    0

    Nowadays it's all about the software

    You know I meant Android, instead of Chrome...

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