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.

Sprint Employees now training on the Palm Pre, Pre's Launch is Near

All the rumors and speculations of a mid-April/late April/May launch of the Palm Pre doesn't appear to be too far of a stretch. Stated in an email from Sprint, "Employees can expect training to start in April as well as multiple communications to get them excited and ready to help our customers." I was wondering if the training has begun -- so I asked for a confirmation on that thought.

"I would like to inform that Sprint is in the process of providing the training for the new Palm Pre. Once it's launched, Sprint will be ready to serve their valued customers regarding the Palm Pre."

The fact that Sprint employees are already training up on the Palm Pre, pretty much implies that the release date of the Pre should be near. On top of that, early this week, Sprint began getting the word out about the Pre with their new marketing campaign. So don't be surprised when the Palm Pre launches within the coming 5 weeks or so!

Some say that after seeing Palm Pre demos at CTIA, the Pre doesn't seem to be ready, software wise. And of course many have advised Palm and Sprint to not rush the phone. So the question is, is it really ready?