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

One 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