Nokia’s smartphone component costs vs Apple’s iphone component costs

An article in the Wall Street Journal (May 31, 2012) describes an estimate by iSuppli that components for the Nokia Lumia 900 cost $ 209 while those for the 16GB iPhone cost $ 190. But the Lumia sells for $ 450 without a contract, while the iPhone sells for $ 649. The margin for Apple is thus twice as much as Nokia. Are the Lumia components more expensive because they are better i.e., larger screen and more wireless chips, and thus justified as a means to attract customers by lowering margins and being competitive ? Are Apple’s supply chain and procurement processes inherently superior to Nokia’s ? Or is it Apple’s cash hoard that enables early cash payments to suppliers, thus enabling lower component costs ?

About aviyer2010

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