Nokia to increase orders from Compal for 4.7″ Nokia Lumia 625

| July 19, 2013 | 46 Replies

Screen Shot 2013-07-19 at 18.42.15

 

Digitimes reports that Nokia’s going to further increase their orders from Compal. Their sources appear to confirm the 4.7″ screen ordered from Compal, priced possibly at 320USD with a Q3 announcement.

The Lumia 625, which is outsourced to Compal Communications, will come with a 4.7-inch display and is powered by a Qualcomm 1.2GHz dual-core processor. The model will be priced at US320, targeting the mid-range smartphone segment, revealed the sources.

http://www.digitimes.com/news/a20130719PD207.html

Cheers Joni for the tip!

Category: Lumia, Nokia

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Comments (46)

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  1. Samantha Vermillion says:

    Great to heart that news about Lumia 625.

  2. JGrove303 says:

    This will likely sell well here on the USA. Free phone on contract with AT&T I’d bet.

    • Bloob says:

      With the current strategy US seems pretty much lost. They’ve been losing market share since WP7. Nokia should still present their high end in US for the visibility, but IMO they should start considering releasing high end phone in other countries first.

      • Janne says:

        Agreed. Visibility matters, but other than that I think U.S. investments should probably be toned down a little. At least made sure they are not done at the expense of others.

        • Bloob says:

          Yeah.

          Why not release high end in Finland / Italy / other country, that has taken a liking to WP? I do not quite understand their thinking.

          • Janne says:

            Elop was asked this at the AGM. He answered quite long, but the bottom line was to get “favors” from big operators in big countries, required giving them exclusives. So, AT&T gets a little bit of timed exclusive and in return pushed Nokia more than they otherwise would (not that its enough but you get the point). The other point for not launching e.g. in Finland was the small size of the market and the desire to first go to the big markets because they couldn’t always be everywhere at the same time.

            I think Nokia should always include Finland in the launch countries. As a principle. I doubt even AT&T would have minded if Nokia had pushed such a principle. It would be good PR in the country where Nokia still has significant workforce requirements for example (they are hiring new people here too).

            • Bloob says:

              Given their lack of stock recently, I don’t think the fact that a market is small(ish) matters all that much. ;)

            • Harangue says:

              What does AT&T care about what happens across the pond. It’s not like it is stealing they’re thunder or customers or anything.

              • Janne says:

                Well, that was Elop’s answer as I recall it.

                I guess there is some glory in having a world first? At least AT&T got that with Lumia 900 and Lumia 1020 as a timed exclusive of around one month.

                • richard says:

                  The momentum of the consumers to buy the recent announced phone is missing as time goes by. Everyone has access with the Internet now. Once they announce the whole world knows so no reason for not releasing the phone immediately and ship it to any where in the world. Hope you got this point.

                  • Janne says:

                    Sure. I agree personally with that.

                    Something more on Nokia’s thinking:

                    Why Nokia continues to pursue the US market despite limited success
                    http://www.youtube.com/watch?v=vBxCy5C3lDE

                    One new reason I hadn’t heard before: AT&T labs was considered useful for product quality measurement.

                  • Z A E E N T E C H says:

                    @Richard I agree with you 100%. What @Nokia’s marketing is thinking? They should focus more on the availability of their newly announced flagship product as many market as possible to cash the momentum as much as possible. This will helps its cash flow and also USA market by creating more visibility because of internet.

      • Viipottaja says:

        The difference in time between the US launch and the first other market has really been negligible: for Lumia 900 about a month (IIRC), for 920 the same or less, for 925 even less, and for 1020 seems to be a few weeks.

        So don’t think it really makes a huge difference either way.

        But, Nokia MUST keep pushing US as hard as it can. It would be stupid to give up now – the US is still probably number 2 in value for smartphone markets, and growing.

        • Janne says:

          I believe only Lumia 900 and Lumia 1020 launched in the U.S. first, as circa one month timed exclusives as you say. Lumia 925 actually launched first elsewhere as did, I believe, all the other Lumia models – other than the few carrier exclusive designs.

          So no, I don’t think that really hurts much. Still, Nokia’s U.S. efforts may have hampered their ramp-up elsewhere in some cases and, if so, I think they would be wiser to re-evaluate. U.S. is important for visibility and developer support, but if they are not making headway, tone it down a little.

          I have no problem with U.S. efforts as long as it is not hurting Nokia elsewhere, in markets where they actually could sell stuff, if it only was on sale. After all, after the first Lumia launch, Nokia themselves decided to focus more on areas where there is success than try to be everywhere. I think that partly should go for U.S. too.

          • Janne says:

            Another example: At the end of last year, U.S. was reporting fairly good Lumia 920 stock, whereas rest of the world was without or with poor stock – many markets where Nokia could have sold that stock easily. These are the kinds of things I think Nokia needs to re-evaluate to see if there is imbalances. If there isn’t, fine. If there is, adjust.

      • JGrove303 says:

        I wouldn’t say first, I would say release the devices at the same time.

      • nabkawe says:

        :) problem is if they released them in a different country first Americans will rip them apart for doing so, ( Americans can be bratty this way :D )
        I have an article coming about Microsoft & Nokia’s relationship.

        • JGrove303 says:

          Bah! Ford had been keeping all its great cars in the UK and Europe and never brought them over intact to us Yanks. Holdens in Australia were bitchen compared to the Monte Carlos we got on home terf. Our Nissan 240SX was a joke compared to the Silvia Ks the rest of the world got, and to Australia’s 200SX. We never even got the S15, any the the Skylines (until the most recent GTR). None of these companies suffered backlash from us Americans.

          We are actually quite familiar with getting 6 month delayed up to not getting at all Japanese game releases. See Monster Hunter as an example. Yet Capcom still sells loads of games here.

          So, if Nokia was to, and have, released a device in other market before us, we Star Spangled geeks might get bent, but there would not be any real movement against Nokia, MS, or AT&T.

  3. dietyyli says:

    According to kauppalehti.fi announcement might be coming next week.

    http://www.kauppalehti.fi/etusivu/1020+oli+vasta+alkua+-+nyt+tulee+jatti-lumia/201307460703

    finnish only, sorry.

  4. Janne says:

    Nokia increasing order sizes?

    Of course. They need to.

    Mediocre success demands better.

    • jiipee says:

      I wonder when they will sell their manufacturing/assembly. I thought that Compal was a mid-term solution, but it seems that the volumes are kept and even increased. In other words, they can match cost and quality. If the feature phone business continues with zero profitability or goes red, they will need to sell that capacity. After selling it they will lose some amount of economies of scale.

      Now you can write FUD onto the next comment ;)

      • Janne says:

        I would, but I actually find your question interesting.

        It is a good question. Apple is highly successful without owning any factories. There is merit in that thinking too.

        And it is true that Asha is faltering, though nothing immediate – there will be demand for those phones for a long while.

        Some of that Asha capacity could be converted to Lumias, some could be sold. Or maybe the new Asha platform will stop the bleed.

        • jiipee says:

          Nokia needs to replace Asha with lumia soon. Its hard to believe that the new Asha will make a difference. It has no ecosystem and its not much different to the existing Asha lineup. Also, the profit potential on that price range is limited, they just need to push Lumia and hope for the best.

          Gross margin may have been slightly positive, but not sufficient. I dont think they will continue for more than a year, if there is no improvement.

          Related to economies of scale: alongside manufacturing, there are benefits in brand marketing and go-to-market activities.

      • Viipottaja says:

        I thought the features phones still have a positive contribution margin even in the last report, in contrast to smartphones.

        • Bloob says:

          They do. Also “economies of scale” come largely from ordering much of the same stuff, thus getting it cheaper. Not much in common between Lumias, Ashas and basic phones.

  5. zomer says:

    hope it will have 1GB of ram

  6. Svedu says:

    I dont understand why Nokia outsources production. Dont they still have almost 10 factories around the world, and still have to pay salaries to people working there. Are these own factories not enough or dont they have the competence for certain models? Could someone please explain this to me.

    • Janne says:

      They out source some of the production, not all of it. They have always done it, even during the Symbian years.

      Yes, Nokia still has many, many factories. But some of those are for Asha etc. models, it probably makes logistical sense to outsource some models for flexibility.

      • Svedu says:

        Ok, thanks for reply. Still cant see too much logic in the logistics part however. Seems like Nokia have their factories quite well spread out over different continents. And it just feels for me that once you have your own factory, you better use it too its maximum because it includes so many fixed costs anyway. And the sales volumes have just been going down last years, so even if they have closed some european factories its difficult to see that the remaining ones are used to its maximum.

        • Janne says:

          Great thing about third-party manufacturing is that you can manufacture more than your own factories have been set up for and more easily turn that external manufacturing down when you don’t need the extra capacity etc.

          • Svedu says:

            How about the flexibility in their own factories? They just invested in a new facility in Vietnam, is that only for basic phones (which seems to be in a heavily downtrend), or is it used also for Lumias (which hopefully continues to grow). I dont see this info from Nokias web page. They mention for some factories the main production type, but its said nothing about possible flexibility when industry dynamics is changing rapidly.

            • Janne says:

              I believe the Vietnam facility is for basic phones only.

              I am merely speculating on Compal. I know originally they used Compal with Lumia 800 because Compal had a reference design that allowed Nokia to jump-start WP7 production from zero. I believe with Lumia 625 they are just using Compal as extended production capacity. Exact reasons are speculation.

            • Viipottaja says:

              Janne is right, external manufacturers are used for their higher flexibility and ability to swing them up and down on short notice. Own factories are for the steady flow – you don’t want to own more than you can utilize (more or less) to capacity.

              A kind of analogy could be a the power grid. There are baseload plants (e.g. typically big hydro, run of river hydro, nuclear and big coal) and intermedediate load plants, and peaking plants (e.g. diesel or some gas, hydro storage). Compal is a bit like those peaking plant.

              Who knows, tt may be even true that Compal is per unit higher cost than using their own (baseload) plant, similar to a gas or diesel plant being higher cost to run. :) Well, I am probably pushing the analogy too far now.

  7. joza says:

    It will not have 1gb of ram, of course. Wait, $320 ? 620 was priced at $180, right ? Bigger screen doesn’t really justify the difference i think.

    • v.s.i says:

      We’ll see about the price, but it usually comes down fast. At least it did for the 620 and 520. Hopefully the CPU is Snapdragon 400, although it could just be the S4 Plus (but they’ve only ever used the 1GHz S4 Plus so maybe the clock change stems from a CPU change :) )

    • Bloob says:

      Yeah, that’s 7-series pricing.

  8. Andrew_b says:

    Good to see BBC’s clueless apple fanboi twat, Cellan-Jones still earning his kickback dollars:

    http://www.bbc.co.uk/news/business-23353959

    So now he writes ‘business’ articles for the famously unbiased BBC as well as (apple pole-sucking) technology ones?

  9. joza says:

    Yeah, i don’t think many of these reports are true. Wait and see i guess. They say it has the same S4 chipset as 520, 620, etc..

  10. ms.nokia says:

    “Nokia to increase orders”

    about f@#*ing time !!

  11. nabkawe says:

    Did i read correctly or will the Lumia 620 be OUTSOURCED ? ( i understand Nokia outsources lots of things) but to fully outsource a phone ?

  12. joza says:

    Nokia develops the whole phone and then outsource production. With their own quality control of course. Why does that surprise you ? Iphone or Ipad were never produced by apple but foxconn. Even Samsung outsources production of low end models. Get it ? Lower manufacturing cost, faster production….

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