A Nokia executive has revealed
that its cheap Nokia 105, a variant of which has just gone on sale in China for the equivalent of $26, makes a similar profit margin to its Lumia smartphones. Nokia's China Platform and Technology R&D director Jun Wang was quizzed about how Nokia could hope to make any money pricing the handset so cheaply. He surprised his audience with his revelation, which he said is underpinned by the fact that the company expects to ship the low-end devices in high volumes.
One of the reasons Nokia expects to sell the Nokia 105 in large numbers is that more than 60 percent of mobile sales in China are for devices that cost under $300. Further, making Android-powered devices for under $50 is very difficult, leaving the space open for Nokia to sell plenty of its cheap, but branded handsets. According to Nokia, there are over 2.7 billion people in the world that still don't have a mobile phone of any sort.
Nokia recorded a small Q1
net loss of just $150 million as its restructuring efforts have started to take effect, stemming heavy losses in the past 18 to 24 months. Its Windows 8-powered Lumia smartphones have also started to gain traction with the Finnish company reporting that it sold 5.6 million in the last quarter. It still has some way to go before it sells over 200 million Lumias as it has its 100-series low-end feature phones. [via Unwired View