iSuppli is certainly the authority when it comes to pegging manufacturer costs in the world of handsets, but its latest report has a giant question mark stamped on the cover. Without actually having a handset on hand, the firm has placed Palm’s cost at approximately $138 per unit to build the Pre. Now, we know iSuppli knows its stuff but we have to take issue with the fact that it reached this conclusion without actually, you know, having a Palm Pre on hand to analyze. Instead, iSuppli based the majority of its calculations on assumptions. Educated assumptions, yes, but assumptions none the less. Regardless, it’s safe to say that the firm is certainly in the right ballpark and the Pre will likely cost much less to build than the iPhone, which runs Apple about $174 per unit. Even if iSuppli’s numbers are 10 percent off on the low end, Palm is still looking at doubling down with each unit sold. Not bad, not bad at all.


Zach Epstein has worked in and around ICT for more than 15 years, first in marketing and business development with two private telcos, then as a writer and editor covering business news, consumer electronics and telecommunications. Zach’s work has been quoted by countless top news publications in the US and around the world. He was also recently named one of the world's top-10 “power mobile influencers” by Forbes, as well as one of Inc. Magazine's top-30 Internet of Things experts.