Commoditized cheap components, and economy of scale. This phone has 8MB of RAM for example, which not only is a very cheap component to buy, but given the amou

Commoditized cheap components, and economy of scale. This phone has 8MB of RAM for example, which not only is a very cheap component to buy, but given the amount of phones Nokia will be producing, it will cost them even less. Same for camera, and every other component. In 2015 some things that used to be very expensive, like multi megapixel cameras, are worth less or more like a few peanuts nowadays if bought in large amounts.