Recent research from iSuppli shows that even though the iPhone 4S is more expensive than the Lumia 900, Apple actually pays less per part than Nokia does. The biggest individual price difference is between displays; Apple pays $37 for theirs, Nokia pays $58. All told, Apple pays $190 in parts, while Nokia pays $209, which leads to Nokia making a $241 margin per device, and Apple making $459.
To be fair, Apple has some pretty great agreements in place with manufacturers thanks in no small part to the massive scale at which they place orders, plus the Lumia 900 has a bigger screen and an LTE antenna to pay for. In any case, when boiling costs down to a per-device basis, it's easy to see why Apple is sitting on a mountain of cash. You would think that Nokia would have mastered churning out a bajillionty phones at scale and reaping the benefits of scale, but those glory days of the dumbphone reign are long gone, and clearly not translating well to their future in smartphones.
As much as we can on Nokia for having such slim margins, that's more a result of their market position rather than cause of it; Windows Phone is still very young, and even though it's set to overtake BlackBerry market share given its current momentum, it will be a long time still before Nokia (or anyone else) will be able to see the same margins as Apple.
A Hong Kong-based activist group called The Student & Scholars Against Corporate Misbehavior has recently issued a report concluding that very little has change in terms of working conditions since the Fair Labor Association published the results of their in-depth audit. SACOM's conclusions come from the result of over 170 employee interviews and visits to several Foxconn factories. Apparently unreasonably high production targets, inhumane worker treatment and salary cuts "remain the norm". SACOM demanded four changes of Foxconn: proper election of trade union officials, wages in line with living costs, proper training in safety protocols and access to appropriate protection, and sufficient compensation for those who have been infringed upon.
It's good to see another watchdog getting involved with Apple's factories, considering the FLA and Apple are suspiciously cozy. Other groups, like the China Labor Bulletin, agree with SACOM that there hasn't been much other than PR stunts after the audit. SACOM has found that even with the increased wages, the reduced hours have ultimately lowered salaries.
To be fair, it's only been a few months, but one would have hoped that the requested changes were being implemented a little more speedily. At best, Foxconn factories have seen a slightly increased compliance with overtime laws, but the changes needed at iPad and iPhone factories are far more broad than that. Apple has certainly taken an active interest in improving worker conditions, but in the end, Foxconn is their supplier, not their subsidiary, and there's only so much pressure they can apply.
iMore isn’t just a website, it’s a community fueled by millions of people who comment on the stories, give and get help on the iPhone and iPad forums, and join us each and every month in discovering great new ways to enjoy our iPhones, iPod touches, and iPads. This month we chose JustMe'D and he is exactly that kind of super engaged, incredibly helpful, truly awesome iMore community member.
But enough from us, let’s let Ty do the talking.
Tell us a little about yourself?
I am 49 year old retiree (City of Orlando), married w/4 kids, and I enjoy life, reading, technology, fitness and my God.
How long have you been an iPhone or iPad user?
I bought an iPhone 3G in 2007 and although I enjoyed it, I enjoyed Blackberry devices more so I had it for about 2 months before it slipped into the ocean off the coast of South Carolina. I purchased the iPad 2 last summer and the iPhone 4S in October so I guess my total time with iOS devices is just under a year.
What brought you to iOS?
I was looking for a professional looking device with power, speed and simplicity. I found what I was looking for in both the iPad 2 and the iPhone 4S. I purchased them and have been content ever since.
What brought you to iMore?
Whatever device I use, I try to become a part of a collection of users and such was the case with iMore. I perused it for a while, like the information on the blog and the knowledgeable people throughout the forum and I wanted to be a part of it.
What are your favorite apps?
What are some of your favorite accessories?
- Apple Bluetooth Keyboard
- iPad Smart Cover
- Bose IE2 headset
- Jawbone Icon Bluetooth headset
What are you most looking forward to from Apple in the future?
Just more great products and services.
If you haven’t joined our incredible community yet, there’s never been a better time. Meet great people, get help with your iPhone and iPad, share your ideas, and enjoy fantastic conversation. Perfect for newcomers and pros alike — Join now and maybe you will be picked for our reader spotlight along with a free iPhone case of your choice!
What would you do with $110 (not billion) dollars?
Remarks for iPad
Win 1 of 8 FREE stylus pens from the iMore Store!
- Joselito Castro