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Nokia (NOK) to Keep High-End Lumia Production In-House

January 6, 2012 7:23 AM EST
Why outsource production when you can make equipment and devices cheaper and oversee quality better in-house? Nokia (NYSE: NOK) is evaluating that very question right now.

According to data from Digitmes, Nokia will maintain production of its high-end Lumia 900 smartphone in-house, having outsourced production on the Lumia 710 and 800 already.

Nokia is expected to unveil the Lumia 900-series lineup at the Consumer Electronics Show (CES) in Las Vegas, which includes the anticipated Lumia Ace smartphone. The devices will run on Microsoft's (Nasdaq: MSFT) Tango platform, and be available through AT&T (NYSE: T) -- at least initially.

Digitmes noted "Nokia will continue to subcontract its entry-level models to Taiwan-based handset ODMs, but the shift in orders is set to bring down the ASPs of local handset makers, said the sources."

It wasn't made specifically clear why Nokia decided to produce the Lumia 900s, but one could guess it wants to ensure quality for the higher-end models. With market share in the U.S. and worldwide seeming to slip in the smartphone market (though basic handhelds are still selling well for Nokia), making a move with Windows Phone will be key for it moving forward.


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