Before Apple came into the market, Nokia was considered as the sole and most popular owner of mobile phones. People considered it as the best seller of mobile phones and the most reliable too. But since Apple has hit the market with idea of its new smart phones series, Nokia has been drawn back and is struggling to launch their series of smartphones too in order to stand in the competition again.
Recently they have launched another series of smartphones known as Lumia series. The latest from the house is Lumia 900, which is in competition with iphone 4s. Lumia 400 is around $200 cheaper then iPhone4S yet Nokia has to pay more for it components. This is a very big drawback.
According to the statistics, Nokia sends $209 to buy the components for a single Lumia 400 whose selling price in the market is $450 whereas on the other hand Apple buys components for its iPhone4S for $190 and the sale price of Iphone4S is $649. This is selling shocking. One might not consider it to be a big difference but if you look it on the whole, it costs millions of dollars more to the Nokia Company. Wall street journal wrote in its investigation regarding this that Apple margins are double as compared to the single mobile it sells. This is because Apple has a very strong and trusting relation with its component manufactures in Asia.
Taking an advantage of Apple repute and its market position, they try to buy the components at the lowest prices possible from the manufacturers, which Nokia does not do. Another thing that Apple is doing for the suppliers is that it helps them set up new factories, get them updated with the latest technology and equipment, and provide security. In return they not only get cheap prices but also newest technologies to use. This is how Matthew Panzario, sums this all up:
€ Get that kind of stuff that is not available in market.
€ Pay more money to the manufactures to get you new technology
€ Get huge profits
€ Put up discounts
According to the reports getting such low profits is a problem for Nokia so they better come up with more ideas to increase their profits on such smartphones. Nokia runs on Microsoft windows whereas iPhone has its own iOS. This is problem why Nokia is struggling to still keep its reputation in the market.
Rest of the mobile phones manufacturing companies are also doing the same thing, coming up with new models every day to get good prices. Most of them are touch screen devices with large sized and attractive features.
IPhone users out race every other company now days, in order to use all the features it offers, one must unlock iphone 4s and then use it. It then can work on any network service available in the region where you live.
Recently they have launched another series of smartphones known as Lumia series. The latest from the house is Lumia 900, which is in competition with iphone 4s. Lumia 400 is around $200 cheaper then iPhone4S yet Nokia has to pay more for it components. This is a very big drawback.
According to the statistics, Nokia sends $209 to buy the components for a single Lumia 400 whose selling price in the market is $450 whereas on the other hand Apple buys components for its iPhone4S for $190 and the sale price of Iphone4S is $649. This is selling shocking. One might not consider it to be a big difference but if you look it on the whole, it costs millions of dollars more to the Nokia Company. Wall street journal wrote in its investigation regarding this that Apple margins are double as compared to the single mobile it sells. This is because Apple has a very strong and trusting relation with its component manufactures in Asia.
Taking an advantage of Apple repute and its market position, they try to buy the components at the lowest prices possible from the manufacturers, which Nokia does not do. Another thing that Apple is doing for the suppliers is that it helps them set up new factories, get them updated with the latest technology and equipment, and provide security. In return they not only get cheap prices but also newest technologies to use. This is how Matthew Panzario, sums this all up:
€ Get that kind of stuff that is not available in market.
€ Pay more money to the manufactures to get you new technology
€ Get huge profits
€ Put up discounts
According to the reports getting such low profits is a problem for Nokia so they better come up with more ideas to increase their profits on such smartphones. Nokia runs on Microsoft windows whereas iPhone has its own iOS. This is problem why Nokia is struggling to still keep its reputation in the market.
Rest of the mobile phones manufacturing companies are also doing the same thing, coming up with new models every day to get good prices. Most of them are touch screen devices with large sized and attractive features.
IPhone users out race every other company now days, in order to use all the features it offers, one must unlock iphone 4s and then use it. It then can work on any network service available in the region where you live.
SHARE
