If you are a Nokia handset fan, you were probably excited when the N8 launched and you could get your hands on the smartphone. We have already seen the N8 get its teardown over at iFixit. iSuppli has torn up its own N8 and offered up an estimate of what it costs to build the phone.
The final tally for the N8 is $187.47. Interestingly, iSuppli pegged the cost to build the iPhone 4 at a nearly identical $187.51. The most costly part of the N8 is the big 3.5-inch Samsung sourced AMOLED touch screen that costs $39.25. That’s not the only part in the phone over the $30 mark though.
Breakdown of Nokia N8’s Components
iSuppli also estimates that the 16GB of flash storage costs $37.12 and the high-end camera element costs $31.08. The next most expensive part is the chipset with a cost of $22. These components are crucial for the N8’s performance and user experience. The AMOLED screen, for instance, offers vibrant colors and deep blacks, making it a standout feature for multimedia consumption. The 16GB flash storage ensures ample space for apps, photos, and videos, while the high-end camera element is designed to capture high-quality images, a feature that was heavily marketed by Nokia.
Other components include the battery, which is estimated to cost around $10, and various sensors and smaller parts that add up to the total cost. The assembly and testing of the device also contribute to the overall expense, although these costs are generally lower compared to the cost of the individual components.
Market Position and Challenges
Despite similar build costs and similar retail prices, the N8 really has little chance of competing directly against the iPhone and most Android handsets in the market. Nokia has simply lost much of its luster in the high-end phone market in the US. One of the main reasons for this is the software. While the N8 runs on the Symbian operating system, which was once a leader in the mobile OS market, it has since been overshadowed by iOS and Android. These operating systems offer a more extensive app ecosystem, better user interfaces, and more frequent updates, making them more appealing to consumers.
Moreover, Nokia’s marketing strategies have not been as aggressive or effective as those of Apple and various Android manufacturers. Apple, for instance, has a strong brand loyalty and a robust ecosystem that includes not just phones, but also tablets, laptops, and other devices that work seamlessly together. Android, on the other hand, offers a wide range of devices at different price points, catering to a broader audience.
Another challenge for the N8 is its hardware design. While the phone boasts impressive specs, its design is somewhat bulky compared to the sleek and slim profiles of contemporary smartphones. This can be a significant drawback for consumers who prioritize aesthetics and portability.
In conclusion, while the Nokia N8 is a well-built device with high-quality components, it faces significant challenges in the competitive smartphone market. Its high build cost, coupled with a less popular operating system and less effective marketing, makes it difficult for the N8 to compete with the likes of the iPhone and Android devices. However, for Nokia fans and those who appreciate its unique features, the N8 remains a noteworthy option.
Via Bloomberg
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