Having outsourced the production of its Lumia 800 and 710 Mango phones to Compal Communications, Nokia apparently has decided to manufacture its upcoming high-end Lumia 900 smartphones in house, according to sources in the supply chain.

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.

Thanks to the production of Lumia 800 and 710 Mango phones, Compal Communications saw its ASP surge to US$240 in the fourth quarter of 2011, nearly doubling from the level in the previous quarter.

Nokia's planned launch of entry-level Tango-based smartphones in the second quarter of 2012 will further push down ASPs of Taiwan handset ODMs, the sources added.

Nokia is expected to unveil the Lumia 900 at the upcoming CES trade show. Members of the Lumia 900 lineup may include customized Lumia Ace, a model being developed with AT&T and Microsoft, the sources indicated.

Source:digitimes