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  1.    #1  
    From what I have picked up Palm charge $300 for the Pre and Apple charge circa $500 for the Iphone 3G (I think the 3GS will costs AT&T the same).

    Palm make about $100-$125 on each Pre.

    Apple make $300-$325 on each Iphone. It contributes about 40% of their profit.

    Now we can compare airtime agreements all day long but whoever had the Iphone contract would always have to either a) sell the Iphone without any subsidy or b) subsidise the cost of the Iphone and then bump up their airtime contract.

    So is it any wonder the carriers would like to sell the Pre? They can get a phone that is some areas beats the Iphone, in others it does not but is a pretty good competitor and only have to pay $300.

    As a carrier you can pay $500 for the Iphone and hope you can sell enough phones to high paying customers or pay $300 and sell it to the vast majority.

    In the UK from O2 - unsubsidised price is

    1 = $1.60
    UK VAT is 15%
    in dollars excluding VAT
    Iphone 3G 8Gb 342.50 ($548.00) ($476.52)
    Iphone 3GS 16GB 440.40 ($704.64) ($612.73)
    Iphone 3GS 32GB 538.30 ($861.28) ($748.94)
    Palm Pre 260 ($416) ($362)

    This fits in well with the research that Apple will sell the 16gb at $500 and 32gb at $600 to carriers who will make about 22-25% markup on the phone.

    If you consider that Palm will sell the Pre at $300 - that would equate to 187.50 before the carriers markup which would take it to 228 - 234 plus VAT = 260 - 270

    With the average contract in the UK running for 18 months. If you compare the cost differences between the Iphone 3GS and Palm Pre - its 180 which would be spread over the length of the contract ie 10 extra a month.

    Here is the crux - if you fail to upgrade to another phone after your 18 months is over then you are paying the extra 10 per month as a tax as you are receiving nothing in return for it.

    If 20 million Iphones were sold on contract and assume that most people will perhaps delay about 4-6 weeks after their term is up to upgrade then assuming that the extra pcm charge is 10 or $15 then

    20m x 1.5 (one and half months) x 15 = $450m was collected in the Carrier Tax or whatever you want to call it.
  2. #2  
    Best Buy lists the Pre's cost as $849.99:
  3. #3  
    That's BestBuy's pricing, not Sprint or Palm's pricing. BBY always jacks up full retail prices by as much as $200 - $300 vs Sprint's retail price.

    They do this to only attract as many new sign-ups or upgrades/renewals vs people buying without contract renewals because the backend residuals and commissions are what they care about.
    .....Life is But Such Sweet Sorrow.....
  4. #4  
    Quote Originally Posted by Merovingian View Post
    That's BestBuy's pricing, not Sprint or Palm's pricing. BBY always jacks up full retail prices by as much as $200 - $300 vs Sprint's retail price.

    They do this to only attract as many new sign-ups or upgrades/renewals vs people buying without contract renewals because the backend residuals and commissions are what they care about.
    So what is Sprint's retail (non-subsidized) price for the Pre?
  5.    #5  
    Kupe each retailer can set their own selling price. I was referrring to the price that Palm sells the device to the carriers and retailers.

    I know you fully understood what I was writing.

    Best Buy sells tha Pre to employees circa $450 - if you search the forums someone posted the Best Buy stock system with prices for the Pre and Touchstone for employees.

    The $450 charged to Employees does fit in with the price that Palm is charging to its suppliers of $300.
  6. #6  
    Quote Originally Posted by no1smartphone View Post
    $300
    So the $250 instant savings applies to the "regular price," no contract Pre's too? According to the Sprint web page, that discount requires a 2-year contract.
  7. #7  
    Quote Originally Posted by no1smartphone View Post
    Kupe each retailer can set their own selling price. I was referrring to the price that Palm sells the device to the carriers and retailers.

    I know you fully understood what I was writing.
    How would I know what Palm charges retailers for the phone? Why would I even care? It's not germane to the discussion.

    Quote Originally Posted by no1smartphone View Post
    Best Buy sells tha Pre to employees circa $450 - if you search the forums someone posted the Best Buy stock system with prices for the Pre and Touchstone for employees.

    The $450 charged to Employees does fit in with the price that Palm is charging to its suppliers of $300.
    So if I was an employee at Best Buy, I could get the Pre for $450. If I walked into a Sprint Store as Joe customer, what would they charge me to walk out with no commitment?
  8.    #8  
    Go into a Sprint Store and ask them.

    The price that Palm charges for the Pre is relevant how can you say it is not? The price that retailers charge is up to them or have you never seen different prices for the same product? Never been on a price comparison website?

    You are confusing demand for the Pre pushing up the price at retail and on ebay with the price that Palm is charging its retailers / carriers.
  9. ayman86's Avatar
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    #9  
    i believe it 550
  10. #10  
    Quote Originally Posted by no1smartphone View Post
    From what I have picked up Palm charge $300 for the Pre ...
    No they dont.
  11. #11  
    I don't think anyone posting here has any idea what Sprint pays Palm for the Pre. I wouldn't be at all surprised if it isn't priced on a sliding scale, dependent on volume. Or one price for introduction, followed by a different price later, with the later price determine partly by sales volume.
    Bob Meyer
    I'm out of my mind. But feel free to leave a message.
  12.    #12  
    Isuppli who have been pretty well bang on the money with their teardowns estimated that Palm would charge $300 for the Pre.

    http://blogs.barrons.com/techtraderd...-price-of-200/
  13. #13  
    Wholesale cost to dealers is ~$454 or so if I remember correctly. It isnt my line of work anymore so I am not as on top of it as I once was.
  14. #14  
    Quote Originally Posted by no1smartphone View Post
    Kupe each retailer can set their own selling price. I was referrring to the price that Palm sells the device to the carriers and retailers.

    I know you fully understood what I was writing.

    Best Buy sells tha Pre to employees circa $450 - if you search the forums someone posted the Best Buy stock system with prices for the Pre and Touchstone for employees.

    The $450 charged to Employees does fit in with the price that Palm is charging to its suppliers of $300.
    Ah i think some correction is needed here. BestBuy DOES NOT SELL the Pre to employees at $450 (at least not yet). Right now, they are sold out at all of them plus there's a directive saying no employee sales (even employees buying on contract) till inventory levels increase.

    Regarding what the price shows in the system (stock system), that can always be modified anytime by corporate.
    .....Life is But Such Sweet Sorrow.....
  15. d94
    d94 is offline
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    #15  
    cost on a pre is just over $300
    palm pro > visor > m100 > visor prism > clie sl30 > zire 71 > dell X5 > toshiba E755 > clie NX70 > ipaq 2200 > Treo 700w (verizon) > Treo 700wx (sprint) > Treo 755p (sprint) > HTC Mogul > HTC Diamond > HTC Touch Pro > Pre

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