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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.

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Reader Comments (8)

I would be thrilled with a $170 price tag. Sign me up right now.

April 29, 2009 | Unregistered CommenterChris Manning

Is that bottom line after the 2 year contract discount you think?

April 29, 2009 | Unregistered CommenterJohn

If Palm/Sprint actually sell it for that then Palm (and Sprint)will be King AGAIN! SOON! ~ I'll take two please

April 29, 2009 | Unregistered CommenterDougster123

That would be a very nice price point. My girlfriend has been paying way too much for a basic Verizon plan on a crappy old flip phone. I plan to get a pair of these when they come out and get her on my Sprint plan so anything under $200 would be nice. Picking up a pair for $300 would be excellent.

April 29, 2009 | Unregistered Commenterjerry

i have had a feeling that the price with 2 year contract would be about $199. if the pre debuts with a price as low as $150-170, i may be getting one much sooner than i thought! that is very reasonable.

April 30, 2009 | Unregistered CommenterBrent

When the Palm Centro first came out it was 150.00 with a two year contract and then you had the option for a 50.00 mail in rebate. It'd be really nice if it was something close to that with the Pre

April 30, 2009 | Unregistered CommenterAsh

It doesn't make sense to me that people care if a phone comes out at $150 vs $199 or even $400. The cost of the phone is in the plans that are required and plans on phones like these are expensive. I'd gladly pay $400 for a phone like the pre or iphone if I didn't have to take it with a contract that would end up forcing me to pay $2400 over the life of the contract.

May 2, 2009 | Unregistered CommenterJeff

OHHH....that would ROCK! I am due for a new "2 year" contract resign and I have a credit of 150.00. So I would be sooooo happy if I could apply it to the cost of a Pre....;-) I am a single mom of 4 kids and pretty much rely on my phone for everything. I rely on it soo much cause I am always away from home at soccer, guitar, swim lessons, teaching...yada, yada, yada. I use it for email, fb, twitter, googling, ebay, etc...I currently have an Instinct and hate it terribly! I can't wait to get rid of it. They hyped the "hell" out of it when it first came out and for what?? Nothing! It's useless with no funcional apps at all. NOT even a calender i can sync up to with my home p.c. With 4 kids that is critical. For me it's just one more thing i now have to carry, a daily calendar, which stinks. I can't wait for the Pre, from all the information I have read it looks soo awesome. Synergy, i think that's what it's called, is the coolest technology I ever seen in a cell phone. Having different applications/tools interact with each other to make life simpler, easier and more effiecint is definately the way to go for busy moms like me. Woo, alrighty then, they should pay me for this post, I'm soo good at promoting...j.k. ;-)) Can't wait til June 7...Thanks...Suzanne ;-)

May 13, 2009 | Unregistered CommenterSuzanne Ochoa

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