Nokia Lumia 900 Costs £136 To Manufacture

The Nokia Lumia 900 is the company's new flagship Windows Phone model, soon to be released here, and already out in the US - although with some early predictions of fairly weak sales figures.

Nokia is pricing the handset to be more competitive than the iPhone - at the $450 mark - which it certainly needs to do to break back into the market. Yet the bill for the materials required to manufacture the Lumia is actually more than the iPhone 4S.

This is according to an iSuppli teardown, which estimates the cost of the materials at $209 plus $8 in manufacturing cost, to make a total bill of $217 (£136). That's 46% of its sim-free price.

iSuppli compares it to the Samsung S II Skyrocket, a similarly featured smartphone which has a bill of materials that comes in slightly higher at $236 - but retails at a full $100 more than the Lumia 900.

Add in software and licensing costs, and then the big marketing push which is being splashed out on Lumia, and it seems as if Nokia is really going for it with Windows Phone. A do or die gambit?

Andrew Rassweiler, senior principal analyst, teardown services at IHS commented: "One of Apple's advantages over Android has been the company's complete control of both the hardware and operating system software, helping it to produce efficient and economical iPhone designs."

"For the Lumia 900, Nokia and Microsoft worked in close partnership with Qualcomm to develop and optimize the software stack in order to take full advantage of the hardware. But while Apple capitalizes on its low hardware costs to attain industry-leading margins, Nokia is using this approach to offer an inexpensive phone intended to compete on the basis of price."

We're still waiting to see the Windows Phone handset market share creep up beyond the tiniest of levels; but some analysts certainly believe that Microsoft's OS will push forward considerably this year.