The highly anticipated Palm (NSDQ: PALM) Pre is estimated to cost about $170 to build and will be sold to carriers for around $300, according to iSuppli, which looked at the phone’s components to come up with the costs, Reuters reports. The cost includes hardware of $137.83, manufacturing and basic test costs of $9.58, and software and licensing costs of $22.61. It does not include shipping or marketing costs.
BusinessWeek reports that the preliminary analysis suggests the company will make a healthy profit from each unit sold. If you just look at only the hardware costs of $138, that would amount to a 46 percent profit margin because Sprint (NYSE: S) is likely to sell the handset for $200, after a $100 subsidy.