The $20 Nokia 105 Brings in 29% Profit Back to Nokia

| June 28, 2013 | 21 Replies

DSC02107One of the ground breaking devices in terms of Nokia’s strategy to “connect the next billion” announced last February at MWC has just become that much more interesting. Although the device is already carrying a dirt cheap suggested retail price of $20 it actually only costs $14.20 to get out the door, which amounts to an impressive 29% profit at the suggested retail price.

“The Nokia 105 carries a bill of materials (BOM) of $13.50. When the manufacturing cost is added in, the cost rises to $14.20. At a suggested retail price of $20.00—a new low for a ULCH cellphone—this gives the 105 an implied hardware and manufacturing margin of 29 percent, which suggests modest a profit margin for the Nokia 105.”

I can’t find any solid number on the profit margins of the Lumia range, but some suggest that the likes of the 520 and 521 are selling to close to zero profit (if any at all). On the other hand most sites seem to agree that the iPhone 5 rakes in an insane 68-70% profit per device *jaw drops*

In case you need a refresher check out our hands on of the Nokia 105 in the video below:

http://www.youtube.com/watch?v=pE5MqMTk_lE

Via

 

Category: Nokia

About the Author ()

Hey, my name's Ali- Currently a fifth (and final) year Dental Student from Chicago; studying in Jordan. I love all sorts of gadgets almost as much as I love my cookies! Be sure to follow my Twitter handle @AliQudsi and Subcribe to my Youtube for the latest videos - no pressure. Thanks.

Comments (21)

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  1. Ouch! says:

    Doesn’t take inta account labour, R&D and marketing; probably costs $21 to make XD

    • mj12 says:

      “The Nokia 105 carries a bill of materials (BOM) of $13.50. When the manufacturing cost is added in, the cost rises to $14.20.”

      So that’s 14.20

      • nabkawe says:

        I don’t think Nokia would need to R&D a feature phone after over ten years of making them.

      • Ouch! says:

        Your statement is invalid. That’s like saying Nokia spent $0.70 to create the 105. Now if they made 1 million units, it’s $700,000. Yet it costs $250,000 to make a mold. So the other $450,000 was spent to develop the device, no.

    • Diazene says:

      read the article, S30 was released long ago, and the phone is barely marketed

  2. Ujwal Soni says:

    Got one as a backup..charged it a few days ago and battery seems to have dropped a bar :D

  3. Fz says:

    The title suggests that Nokia would get 29% profit, but if 20$ is the retail price, shouldn’t it include Nokia’s profit as well the retailer’s profit?

    This is pure guess, but let’s say that wholesale price would be 17$ + transport/freight. This would give the retailer something below 3$ and 10% and to Nokia 2.8$ ~ 16.5%. Now, it of course might be that Nokia gets the parts even cheaper.

    .. and there’s a small typo, “29&” instead of “29%”

  4. Fz says:

    Instead of the kind of small typos you do, I manage to leave whole words away, sigh. I guess that’s why you write posts and I write just comments.
    That was meant to say “Now, it of course might be that Nokia gets the parts even cheaper.”

  5. Ouch! says:

    Nokia should just give up and make vibrators, that’s the one thing that can run S30, be colourful and should have a lasting battery life…

  6. Esbro says:

    When will these be available in the US? Anyone know?

  7. Bob says:

    Retailer margin?

  8. Ouch! says:

    My pussy is so wet :)

  9. Kan says:

    So it sells for $20 but costs $14.20 to get out of the door? How does it get to the retailer? By magic.

    When you add in local taxes the selling price will either be above $20, if not then the profit will be below 29%.

    You really should do some research before you write an article or stay off topics you know very little about.

  10. john says:

    lol this brings in profit still lumia cant bring profit and people still think windows is the way lol sad .

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