Palm Pre already torn to shreds, estimated to cost $170
By Chris Ziegler 
posted June 6th 2009 12:21PM
posted June 6th 2009 12:21PM
posted June 6th 2009 12:21PM
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Nice. That is one seriously compact phone.
And seriously cheap. Wow, Palm is making bank on this one.
"and seriously cheap"....
Not true... 170 dlls from the 199 you pay at the door (granted, after instant or mail-in rebate and a contract as every other phone in the US), the ratio of cost of producing vs. price is actually superb for your pocket.
$170 for hardware. But don't forget all the money that went into building the impressive software. Engineers, Programmers etc etc =).
@Rafa: don't you guys in the US have to pay $50 a month for 2 years on contracts? That's like $1200 so Sprint and Palm can share a very nice profit.
Funny how you fail to include the software in the cost of the device. Considering the man-hours spent writing a completely new operating system and the new software to run on it, I would say that you are getting a pretty good deal.
Nobody's 'failed to include' it, how do you quantify development costs per-phone? They're never included in these teardowns.
@G : Indeed that's $1200 distributed over a 2-year span of unlimited everything (so you are getting a good deal for those 1200 bucks). Can you give me the numbers now for the amount spent with att-iphone / vz-storm / tm-g1 over those 2 same years with unlimited too?
If you need a hint.... http://news.cnet.com/8301-1035_3-10257430-94.html?tag=mncol
Yes, but it takes around $170 in variable costs to make one more Pre. Fixed costs will be incurred no matter how many you produce. R&D isn't usually allocated to the product because it is not obvious that the R&D will specifically used for the product. WebOS development, for example, can be used for a lot of different Palm phones.
Once up on a time iSuppli Official Estimate iPhone 3G cost at $174.33
.... isn't it ?
please tear it apart and install a larger side keyboard
Wow... Think about it, you guys.
Palm is paying the fabricators in China $170.02 to build this thing and selling it to you for $199. They are making a mere $28.98 on each one out the door (though the subsidy from Sprint will boost that by a lot more). Still, that's $28.98 to pay for teams of hundreds of hardware and software engineers, designers, working extra hours for years to put together an amazing little device. Not a bad deal, I think.
As for Sprint... Indeed, they are just making bank on this.
Nope. Sprint are buying them from Palm for a LOT more than $199. They're selling them to YOU for cheaper.
@StreetStealth: that is not the way things are done in the United States. Sprint buys the phones from Palm, for a lot more than $200 (Best Buy's no contract price is $850 - http://www.engadget.com/2009/05/25/best-buy-lists-unsubsidized-regular-price-for-palm-pre-at-850/). Sprint then turns around and sells it to you for $200, but making you sign up for a 2 year contract, is which will make them about $1200 revenue for the next two years as everyone else has noted.
not sure why you guys are bandying about the $50/month contract. I figure anyone that's going to buy a PalmPre is going to go with Sprint's Unlimited Everything plan which is $100/month. So that would be $2400 for Sprint for a 2-year contract.
Palm Sucks
so does your mom/wife/daughter
you're dog is a whore too!
I'm sure you're the authority on that, vor.
you are dog is a whore? what?
you suck
@VOR
What??? Dang, even Engrish makes more sense than you!
You're all freaking morons (except Ignatius).
Very pretty.
Its actually even prettier on the inside than it is on the outside, I didnt know that was possible.
okay there is nothing wrong with phones, and not a fanboy of any type but seriously engadget cover something else. This site should just dedicate itself to the Pre, because, it seems that is the only thing you cover now.
I suppose you're going to be bitching next week about the next gen iPhone, eh? "Oh c'mon Engadget, stop talking about this new iPhone! I want something new and fresh, like the latest Zune!"
lol first they are apple fanboys, now the pre is out the bloggers must be palm fanboys,.. how about they are just covering the biggest piece of tech news right now, wether it be palm, apple or microsoft
No. :)
"This site should just dedicate itself to the Pre, because, it seems that is the only thing you cover now."
Ya Engadget!! I mean I know today is the actual release date of this brand new TECHY TOY, but how dare you post articles on this TECHY BLOG about current TECHY TOYS!! I mean, when I come here, I expect to hear about Paris Hilton's latest romps, or how I can get chisled abs by taking a pill. To think I get tricked with the multiple visits here per week, only to be disappointed yet again with more current TECHY news on this TECHY BLOG.
You disgust me Engadget! How do you sleep at night?...
Maybe there isn't shit else to cover that is as big as the Pre is at this point in time? Ever think about that?
Considering its one of the most anticipated phones of the year, I think Engadget is giving it just enough coverage.
Lighten up! The iPhone was the talk of the world when it came out and since it's launch day, why wouldn't "E" cover it immensily? Serious, what a dumb comment, people here want to know because it's dubbed the iPhone killer, so lets see what people thoughts are. The idea of a "gadget" site is to post the latest and greatest updated news and keep their reader' notified, which is what's going on here. and it's not the only post lately, it's just BIG NEWS.
xanax...
STOP FEEDING THE TROLLS
Word on the forums has it that engadget is giving birth to Apple's love child.
Strange to see such notions being applied to another brand. It's not right, only Apple is allowed to be the whipping post. I swear if Palm starts getting class action suits for ridiculous claims about battery life or stock shortages I'm going to be really pissed off.
you pay for webOS
In Soviet Russia prostitutes pay for YOU.
........ wait, doesnt that mean that we are the prostitutes now?
no, the pre is...just look at it lying there, doing nothing to resist those advances. 170 dead presidents is a steal for a phone willing to accept such abuse.
but...maybe that sharpened bottom edge can slow down its attacker.
Consumers have always been prostitutes. Haven't you ever applied for a job?
*your*
:::reminder::: when placing a insult make sure to spell simple words correctly
words like "an"?
Wow this place phails ;) when it comes to spelling.
if you work for enterprise rent a car
you can get the pre for 175
and unlimited service is for 55$ a month
not bad
Enterprise rents cars? I thought you guys were just some hack liquidation dealership for Chrysler.
Innards of the Pre -- the little birdy says "cheap cheap". They obviously plan on lowering the price if they get some volume going.
How?
Can someone please tell em what font Palm use for the WebOS/Pre and all the instore ads? Thanks!
Seems to be: http://www.myfonts.com/fonts/linotype/avenir/95-black/
Haven't found a free alternative though....
Try asking here: http://www.myfonts.com/WhatTheFont/ I've had to for various things and people seem quick to track things down there.
yup looks like it - thanks for the response Kspraydad - much appreciated!
BTW there is already an update. I was just able to download 1.0.2. Haven't seen that listed on any sites yet.