OK I think I see where their 1.6 billion from iPhones comes from...

Apple sold something like 7.1 million hadnsets, they've assumed a profit margin from the reports of around 225 dollars per phone. That is a hugely high figure, and would exclude R&D, Marketing costs etc etc.

Nokia has revenue from handset sales of about 6.9 billion (euros -- about 10 billion US). They seem to have assumed Nokia average margin is 10 us dollars per handset, which is mentalism. If that was a like to like comparison, after R&D and sales costs Nokia would be making a huge loss on every phone sold!

For completeness, Nokias handset business posted a profit of around 850 million (US) (just took the bottom line and canceled out the losses from Nokia-Siemens for this rough figure). Their assumption then would be that all Nokias R&D and sales and marketing costs amount to about 300million to get their 1.1billion figure!

It's a nonsense comparison with made up numbers, essentially.

Nokias figures ARE bad (for them), but it's handset business's profit of 850 million compared with Apples profit of 1.6billion (across all it's markets) isn't so bad...