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Technology Stocks : Nokia (NOK)

NOK 6.500

+1.9%

Dec 19 9:30 AM EST

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To: sylvester80 who wrote (34178)	8/20/2013 1:30:24 AM
From: pyslent	Read Replies (1) of 34857

"What's Nokia's gross margins on the Lumia 520 they sell for $79 and at that price why do they even need the Asha line? In fact the 520 is now cheaper than Asha. But is Nokia making any money at $79" It's pretty safe to assume that Amazon's Gold Box pricing action on the 520 had nothing to do with Nokia's wholesale price to AT&T. But more generally, I don't think any of us know the answer to your query. What we do know is that the whole Smart Devices business had an average ASP of EU157 (about $209) with a gross margin of about 19% in Q2, meaning the average Lumia had a COGS of $170. Safe to assume that Lumia 520 made up a significant proportion of that mix, but that its gross margin was lower than the blended average, even considering the launch price of at least $150 US. Is it selling for negative margins today at $100? Probably not, but it can't be pretty.

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