The phone industry is ultra-competitive and always evolving. Just think of models that were released eight years ago, especially those early smartphones (like a Nokia 7650, for example) that started to  combine the functionality of a mobile phone to personal data management, multimedia support, 3^rd party software extensions and Internet connectivity, it was a huge improvement over earlier dull cellphones. But if latest smartphones such iPhone 4 and Nokia N8 are transported back in time to 2002, people would think that these phones have incorporated alien technologies that come straight out from Area 51.

We can start by comparing prices. The latest iPhone is available in two versions: a 16GB version at $980 and a 32GB version that costs $1080, Nokia instead offers only one version of N8 that costs $700. The price difference is remarkable, but for many potential buyers, these phones are still a little too expensive. However, according to some sources, a Nokia N8 costs $ 187.47 to make, while the production cost of an Apple iPhone 4 is $187.51. That’s only a few cents of difference!

What is interesting is that the costs of the components used are also different for the two phones. The camera of the Nokia N8, for example, is better than the 5 megapixels camera of the iPhone 4, since it uses a 12 megapixel sensor and Carl Zeiss lens. The display, however, is 640 × 360 pixels in resolution, less than the iPhone 4, with 960 x 640 pixels. The A4 1 GHz processor of the iPhone is more powerful than N8’s, which uses an ARM11 680MHz processor. Nokia uses a typical aluminum case, while Apple uses aluminum-silicate glass with a steel frame that causes some problem with the reception quality. The result of the different materials used make the iPhone looks like a work of art and the N8 seems to end up like a typical high-end gadget. This shows that no matter how much money you spend to make a product, what count are ingenuity and creativity.

Operating system is arguably the strength of the iPhone 4 and we know how important it is to have simplicity and functionality in a mobile phone. Since the first generation of iPhone, the intuitive brilliance of the iOS has convinced the experts that Apple was a new strong player in this industry. On the other hand, Nokia N8 uses a new operating system, Symbian 3, which significantly improved compared to the earlier versions.

Finally the last consideration: the design. Considering the high cost, it’s obvious if buyers want more than just a decent looking phone. The iPhone 4 has a really amazing design, as usual, it only has one big button, curved edges and an overall sophisticated look. The design of the Nokia N8 is a little more traditional with a more squared look and according to many experts it is less attractive than the iPhone 4.