There has been a mixed reception to the Nokia Lumia since its launch, but that battle against the iPhone is already a losing one, the Wall Street Journal reports. New findings have revealed that while Nokia sell their top of the line Lumia for $200 less than the iPhone, it actually has a higher production cost, considerably reducing the margin and money Nokia make.
Research firm iSuppli say that the Lumia has a production cost of $209 (selling for $450), while the iPhone 4S costs $190 to make (selling for $649). That means Apple make twice as much on iPhone sales than Nokia does on the Lumia, which would be equivalent to an absolutely massive number if you take all the iPhone and Lumia sales compared.
The difference is down to the larger screen of the Lumia and more advanced wireless chips, which can handle 4G LTE, even though you would imagine that Apple’s ability to get rock bottom supply chain prices also has something to do with it.
Margins could be a big problem for Nokia in the long run, and with lower sales prices a key part of Nokia CEO Stephen Elop’s strategy, is does seem that for the moment they are on the losing side.