Palm Pre Cheaper to Build than Apple iPhone

Those guys at iSupplie have a thing about figuring out exactly how much our favorite gadgets cost to put together. These cost breakdowns don’t really consider the expenses involved with research and development, marketing, accounting, and all that other overhead, but we get a sense of how much these devices would be worth as raw components.

Just as they did with the iPhone and countless other cell phones, iSuppli has figured out the manufacturing cost for the upcoming Palm Pre smartphone. After breaking down this wonderful piece of technology into its individual components and hunting down the appropriate prices from the suppliers, iSuppli has determined that the Palm Pre is worth about $138 per unit in raw materials.

iSuppli doesn’t actually have one of these new phones on hand, so they’re doing it with a little bit of guesswork and a dash of pre-existing expertise. They made some educated assumptions, so the $138 estimate may be off in one direction or the other. For comparison, iSuppli says that the iPhone costs about $174 per unit, again not including marketing, development, and so forth.

Even if this estimate is off by 10 or 20 percent, that still makes the Palm Pre a more affordable handset (to build) than the iPhone. Will this help in bringing Palm back to its former glory of profitability? If that’s the case, then the value of the Palm Pre is well above $138. To Palm, it’s truly priceless.


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