Palm Pre Cost to Build $138; Makes $150 to $170 Retail Possible Pricing.

Seems like the cost to build the Palm Pre is cheaper than the iPhone. As reported iSuppli has defined the price cost for production of the Palm Pre at $138.00 (USD). With the bill cost at 56% of estimated revenue, the pricing looks to be more in line of about $150-170, depending in Sprint's subsidies.
Note that the patent royalties or payments for software were not calculated in this cost estimate, but with Sprint betting on the Pre combined with the everything plan, the $2376.00 (USD) paid over a two year contract will allow Sprint to provide a heavy subsidy on the handset. With The Street's report about Credit Suisse's predictions for sales of 1.3 Million in the first year and 3.0 Million next year, which would equate to an approximate revenue on contract pricing alone (not including subsidies to Palm), over two years of $9,741,600,000.00 (USD). Not a bad haul at all.










Tony Peric