Tuesday, December 12, 2017
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Twitter Makes It Easier For Users to Create Threads
Tsinghua to Invest in China-based Lite-On Storage Plant
Facebook to Book Advertising Revenue Locally Following Pressure
New Radeon Software Adrenalin Edition Provides Amped-Up Connected Gaming
Nintendo Says Switch Sells 10 Million Worldwide
Toshiba Unveils Embedded NAND Flash Memory Products for Automotive Applications
FCC to Hand Over Internet Oversight to FTC
Japan Display Develops 803ppi LCD Designed for Virtual Reality Applications
Active Discussions
Which of these DVD media are the best, most durable?
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
Help make DVDInfoPro better with dvdinfomantis!!!
menu making
Optiarc AD-7260S review
cdrw trouble
 Home > News > Mobiles > $20 Nok...
Last 7 Days News : SU MO TU WE TH FR SA All News

Friday, June 28, 2013
$20 Nokia 105 Cellphone Proves Profitable for Nokia


Is it possible to sell a mobile phone at a price of $20.00 and still make a profit? IHS claims yes.

With its ultra-low-cost handset model designated as the 105, Nokia has shown how it can be done: by sticking to a limited set of features and employing a highly integrated design. The Nokia 105 yields a margin of less than 30 percent, strictly based on hardware and manufacturing costs and retail pricing, according to a physical dissection of the cellphone conducted by the Teardown Analysis Service at information and analytics provider IHS.

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, this gives the 105 an implied hardware and manufacturing margin of 29 percent, which suggests modest a profit margin for the Nokia 105.

"About eight years ago, the IHS Teardown Analysis Team dissected the iconic Nokia 1110 cellphone, a hugely popular device that defined the ULCH segment and had very similar features as the new 105," said Wing Lam, principal analyst for IHS. "We determined that the 1110?s BOM was nearly three times larger than the 105?s - even when accounting for the black-and-white display used on the old model. Therein lies the 105?s secret: By keeping features the same for nearly a decade, the Nokia 105 can integrate nearly all system functions into a single chip, dramatically reducing the cost to produce a cellphone. The 105 allows Nokia to participate in the ULCH market targeting specific regions and consumers."

The 105 is targeting emerging markets including Africa, India, and Latin America. The phone supports long talk and standby times, which are valuable in regions with poor power grids or frequent shortages of electricity. The features of the phone are very simple, with just talk and text capabilities.

In terms of design, the 105 owes its low costs to a single, highly integrated chip: Intel's PMB7900. The PMB7900 combines baseband and the RF transceiver enabling GSM/GPRS functions.

The other two ICs in the 105 are the SKY77580 transmit module from Skyworks as well as a NOR flash device from Micron. Collectively, these three ICs dominate the baseband/RF transceiver/memory subsystem and, when combined with supporting passive components, carry a cost of $5.25, representing 39 percent of the 105's total BOM.

Despite support for color, the 105?s display carries a cost of just $2.25, or 17 percent of the total BOM of the phone.

Nokia has kept this cost to a minimum by employing a TFT-LCD display with a low resolution of 128 by 128. This display technology is very mature and is available in high volume. In the individual 105 model examined by IHS, the display was made by China's Tianma Microelectronics. But there are multiple suppliers of this component, with competition among them further contributing to keeping the price down.


Previous
Next
Intel To Focus On Mobile Chips        All News        Facebook To Review Ads On Pages and Groups
Nokia to Fully Acquire Siemens' Stake in Nokia Siemens Networks     Mobiles News      Nokia Offers Trade-Up Program For U.S. Consumers

Get RSS feed Easy Print E-Mail this Message

Related News
BlackBerry to Pay Nokia $137 Million in Contract Dispute
Nokia 2 With 4100mAh Battery Announced in India
Nokia Halts Development of the OZO VR Camera
New Nokia 3310 3G Coming in October
Nokia Receives Decision in Patent License Arbitration with LG Electronics
Nokia 8 Shipped With ZEISS Optics
HMD Launches New Nokia 105 and Nokia 130 Basic Phones
Nokia 6 Smartphone Will be Available on Amazon
Nokia Unveils the World's Fastest Routers
Nokia and Apple Settle All Litigation, Sign Patent License and Business Agreement
Nokia Focuses On Virtual reality With Upgraded 'OZO Reality' Solutions
HMD Brings Nokia's Classic 3310 Phone Back

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2017 - All rights reserved -
Privacy policy - Contact Us .