Palm Pre production cost estimated to be $138

Posted on Thursday, Apr 30 2009 @ 00:01 CEST by Thomas De Maesschalck
Research firm iSuppli guesstimates the Palm Pre smartphone costs around $138 to build. The most expensive part of the phone is the screen and components related to it, iSuppli claims these parts cost around $39.51.
And while it's hard to predict demand for the Pre, preliminary analysis suggests Palm (PALM) will make a healthy profit from the units it does sell. Judging from a preliminary estimate by market researcher iSuppli, the Pre will cost about $138 to build. That would amount to 46% of the $300 iSuppli expects Palm to charge Sprint for the device; Sprint is likely to sell the handset for $200, after a $100 subsidy, iSuppli speculates. Palm declined to comment on iSuppli's analysis.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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