Palm Pre’s estimated production cost: $170.02

By Shawn Farner | Thursday, April 30, 2009

Palm PreAccording to research group iSuppli, the Palm Pre smartphone costs an estimated $170.02 to produce.  If you’re curious as to how those numbers were reached, here’s a quick breakdown:

  • Hardware costs: $137.83
  • Manufacturing/Testing costs: $9.58
  • Software/Licensing costs: $22.61

There are, of course, other factors that go into a product’s final cost, such as shipping, marketing and so on – but this gives you a rough idea of how much it costs to produce a Pre.  It is believed that Palm will try to sell the Pre to Sprint at $300 a pop, but the actual price for the wireless subscriber would likely be around $200 after a Sprint subsidy.

[via Reuters]

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