Thursday, April 30, 2009

Pre to Cost Palm $170 to Build

Showing that the hype has even affected them, iSuppli on Wednesday released a "virtual teardown" of the Palm Pre, not bothering to wait for an actual device.

Based on iSuppli estimates that rely on a Mobile Handset Cost Model, as well as experts in memory, displays, baseband, component pricing, mobile handsets and wireless connectivity, the cost of the Pre for Palm comes to $170.02.

Tina Teng, senior analyst, wireless communications, for iSuppli said:
"The similarity in features between the Pre and the iPhone clearly reveals the mark Palm is trying to hit.

"The use of a multi-touch screen—a key allure of the iPhone—and Palm’s innovative webOS operating system, are likely to allow the pre to appeal to a broad range of consumers, going far beyond the company’s core group of business-oriented customers."
Last year iSuppli tore down a real iPhone 3G and came up with a cost of $173 for the device.

iSuppli seems to also think this could be the rebound device that Palm has been waiting for. Teng said:
"Palm has been known for years for its touch screen enabled PDA devices, its easy to use, simple operating system and its Treo smart phone product line. However, just a glance at the Pre at CES has changed the industry’s opinions about Palm, showing it is a company that can be competitive with Apple iPhone or any other leading-edge product in the global smart phone market."
iSuppli projects Palm will charge Sprint $300 for the Pre, but that Sprint will charge customers $200, after the carrier subsidy. That price would be pretty consistent with the iPhone, but one has to wonder what Apple has up its sleeve for WWDC, and if it will introduce the rumored cheaper device that could steal all of Pre's thunder.
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