iSuppli tears apart Palm Pre

Market research firm iSuppi continues to take machines apart and figure out how much they cost in terms of bills of material, compared to their sales price. It is all about margins, or yields as wheat makers used to call this stuff.

Market research firm iSuppi continues to take machines apart and figure out how much they cost in terms of bills of material, compared to their sales price. It is all about margins, or yield as wheat makers used to call it.

Isuppli claims that the cost of materials is $137.83 – an uncannily precise number – but it sells for far more than that and worse than that the bill of materials if $170.02, which means it is relying on telecomm carriers to make up the difference, one way or another.

The Pre ain’t yet out, but will be soon enough, and Isuppli reckons it really will challenge the Iphone.

Said Tina Teng, senior analyst at iSuppli: “The similarity between the Pre and the iPhone clearly reveals the mark Palm is trying to hit.”

Palm, said Teng, is right on track to tackle the iPhone. It’s got everything a “smart phone” needs. Simultaneous touch inputs and stuff like that.

Can we live without the Palm Pre? iSuppli is here.  Apple may sue. It’s in its DNA.  Will there be a lawsuit? You decide.

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