The Palm Pre Costs Less To Build Than The iPhone, Storm And G1 - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile
Commentary
4/29/2009
10:30 AM
Eric Ogren
Eric Ogren
Commentary
50%
50%

The Palm Pre Costs Less To Build Than The iPhone, Storm And G1

The price point of the Palm Pre has been a much-debated topic ever since the phone was announced. iSuppli hasn't coughed up that nugget of information, but has estimated that the Pre costs a mere $138 to manufacture.

The price point of the Palm Pre has been a much-debated topic ever since the phone was announced. iSuppli hasn't coughed up that nugget of information, but has estimated that the Pre costs a mere $138 to manufacture.BusinessWeek has a write-up of the latest report issued by iSuppli. In the report, iSuppli estimates that the Palm Pre is costing about $138 to make.

Normally, iSuppli makes its estimates of cost after receiving a production unit. This time around, iSuppli is making some educated guesses based on what it believes to be current market prices for core components.

iSuppli believes the touch screen will be the most expensive portion of the Pre, costing Palm about $39.51 to add to the phone. The Texas Instruments OMAP processor will run $11, the memory chip about $16, wireless components $15, and the camera module about $12. Toss in a few other components, and iSuppli says $138 is the magic total number. That's less than it costs Apple to build the iPhone ($174), less than it costs RIM to make the BlackBerry Storm ($203), and less than it costs HTC to build the G1 Android phone ($144).

iSuppli suggests that it is cheaper because the cost for many of the key components has dropped in recent months, lowering the overall cost of materials.

Of course, none of that includes the cost to develop the phone itself or its operating system, webOS, which is assuredly massive.

How much will the Pre cost users? BusinessWeek believes that Palm will sell the Pre to Sprint for $300, which will in turn sell it to end users for $200 after a $100 subsidy.

None of that has been confirmed by Sprint, though.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

News
Remote Work Tops SF, NYC for Most High-Paying Job Openings
Jessica Davis, Senior Editor, Enterprise Apps,  7/20/2021
Slideshows
Blockchain Gets Real Across Industries
Lisa Morgan, Freelance Writer,  7/22/2021
Commentary
Seeking a Competitive Edge vs. Chasing Savings in the Cloud
Joao-Pierre S. Ruth, Senior Writer,  7/19/2021
White Papers
Register for InformationWeek Newsletters
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
Video
Current Issue
Monitoring Critical Cloud Workloads Report
In this report, our experts will discuss how to advance your ability to monitor critical workloads as they move about the various cloud platforms in your company.
Slideshows
Flash Poll