Comments on: Guess how much it costs Palm to put the Pre together http://www.crunchgear.com/2009/06/06/guess-how-much-it-costs-palm-to-put-the-pre-together/ Gadgets, gear and computer hardware. Tue, 01 Dec 2009 12:09:31 -0500 hourly 1 By: tokuzumi http://www.crunchgear.com/2009/06/06/guess-how-much-it-costs-palm-to-put-the-pre-together/comment-page-1/#comment-1034528 tokuzumi Tue, 09 Jun 2009 18:11:21 +0000 http://www.crunchgear.com/?p=93687#comment-1034528 Last productive conversation with Sprint? Yesterday. I got a used phone on Friday, from craigslist. It was a brick, locking up all the time. I took it to the sprint store. They couldn't repair it, so they are going to issue me a new one, since I have insurance. Just a few months ago, my sister in law racked up ~$2k in international roaming charges while in Mexico. They waived the charges with one call. The charges were valid, and I was only looking for a reduced amount. You deal with Sprint on a more regular basis than I do, but I don't really know anyone recently who has had horror stories with Sprint. Last productive conversation with Sprint? Yesterday. I got a used phone on Friday, from craigslist. It was a brick, locking up all the time. I took it to the sprint store. They couldn’t repair it, so they are going to issue me a new one, since I have insurance. Just a few months ago, my sister in law racked up ~$2k in international roaming charges while in Mexico. They waived the charges with one call. The charges were valid, and I was only looking for a reduced amount. You deal with Sprint on a more regular basis than I do, but I don’t really know anyone recently who has had horror stories with Sprint.

]]> By: M http://www.crunchgear.com/2009/06/06/guess-how-much-it-costs-palm-to-put-the-pre-together/comment-page-1/#comment-1033510 M Mon, 08 Jun 2009 18:09:09 +0000 http://www.crunchgear.com/?p=93687#comment-1033510 Uhm... as far as I know my history, the USA's consumers weren't under any real threat from the axis team. Yes the Japanese attacked you preemptively, but they werent a threat except for some camper out in the woods who picked up a downed explosive balloon from them and a failed forrest fire attempt. Your industry had a great time selling to the europeans though whilst they were fighting eachother. Uhm… as far as I know my history, the USA’s consumers weren’t under any real threat from the axis team. Yes the Japanese attacked you preemptively, but they werent a threat except for some camper out in the woods who picked up a downed explosive balloon from them and a failed forrest fire attempt. Your industry had a great time selling to the europeans though whilst they were fighting eachother.

]]> By: Oh dear: Palm’s Touchstone charger uses some $5 worth of components « Kentmihlbauer’s Blog http://www.crunchgear.com/2009/06/06/guess-how-much-it-costs-palm-to-put-the-pre-together/comment-page-1/#comment-1033137 Oh dear: Palm’s Touchstone charger uses some $5 worth of components « Kentmihlbauer’s Blog Mon, 08 Jun 2009 03:54:19 +0000 http://www.crunchgear.com/?p=93687#comment-1033137 [...] if you’re getting a Pre, you really should have the thing. But it turns out that, while the Pre itself costs nearly as much to make as you’re going to pay for it, the Touchstone charger is made of [...] [...] if you’re getting a Pre, you really should have the thing. But it turns out that, while the Pre itself costs nearly as much to make as you’re going to pay for it, the Touchstone charger is made of [...]

]]> By: Page not found http://www.crunchgear.com/2009/06/06/guess-how-much-it-costs-palm-to-put-the-pre-together/comment-page-1/#comment-1033043 Page not found Sun, 07 Jun 2009 22:04:10 +0000 http://www.crunchgear.com/?p=93687#comment-1033043 [...] Guess how much it costs Palm to put the Pre together13 comments [...] [...] Guess how much it costs Palm to put the Pre together13 comments [...]

]]> By: Bubba http://www.crunchgear.com/2009/06/06/guess-how-much-it-costs-palm-to-put-the-pre-together/comment-page-1/#comment-1032984 Bubba Sun, 07 Jun 2009 19:18:07 +0000 http://www.crunchgear.com/?p=93687#comment-1032984 I own a Sprint dealership and am terminating it in favor of AT&T later this month. I am a 20 year veteran of the cellular industry representing almost every carrier at one time or another. We were originally a Preferred Partner for Nextel prior to the merger. In my time, I have never been associated with a carrier that operates the way Sprint does. They are a dirty operation, deceptive and most significantly ... they couldn’t care less about their customers. Don’t believe me? When was the last time you had a productive conversation with their customer care reps? Exclusive dealers are designed to be a reflection of the carrier. We are to operate and act as parallel to them in every way. I refuse to run my company in such a way to mirror an operation like Sprint. Do yourself a favor. Skip Sprint. Go with a winner like AT&T or Verizon. Sprint is a sinking ship. I own a Sprint dealership and am terminating it in favor of AT&T later this month.

I am a 20 year veteran of the cellular industry representing almost every carrier at one time or another. We were originally a Preferred Partner for Nextel prior to the merger. In my time, I have never been associated with a carrier that operates the way Sprint does. They are a dirty operation, deceptive and most significantly … they couldn’t care less about their customers. Don’t believe me? When was the last time you had a productive conversation with their customer care reps?

Exclusive dealers are designed to be a reflection of the carrier. We are to operate and act as parallel to them in every way. I refuse to run my company in such a way to mirror an operation like Sprint.

Do yourself a favor. Skip Sprint. Go with a winner like AT&T or Verizon. Sprint is a sinking ship.

]]> By: Oh dear: Palm’s Touchstone charger uses some $5 worth of components http://www.crunchgear.com/2009/06/06/guess-how-much-it-costs-palm-to-put-the-pre-together/comment-page-1/#comment-1032981 Oh dear: Palm’s Touchstone charger uses some $5 worth of components Sun, 07 Jun 2009 19:07:10 +0000 http://www.crunchgear.com/?p=93687#comment-1032981 [...] if you’re getting a Pre, you really should have the thing. But it turns out that, while the Pre itself costs nearly as much to make as you’re going to pay for it, the Touchstone charger is made of [...] [...] if you’re getting a Pre, you really should have the thing. But it turns out that, while the Pre itself costs nearly as much to make as you’re going to pay for it, the Touchstone charger is made of [...]

]]> By: Davey http://www.crunchgear.com/2009/06/06/guess-how-much-it-costs-palm-to-put-the-pre-together/comment-page-1/#comment-1032943 Davey Sun, 07 Jun 2009 16:24:14 +0000 http://www.crunchgear.com/?p=93687#comment-1032943 800 is not the no contract price $550 is. That is probably double the Palm cost including R&D on the hardware, OS development, licensing (palm is actually licensing from Microsoft and qualcomm, and others) . The estimate on the parts is probably high as prices keep dropping Here is a guesstamate: -parts $170 -assembly/testing $10 -HW R&D (depends on how they account): ~15 -OS (also depends on how accounted and whether they recapture at 500k or 3million ~20 - Marketing $5 - support Tech and Warrant $15 -Palm costs Licensing of 3rd party IP : $20. There are a lot of variables but the likely rough numbers given the hardware, the no contract list of $550 and the Sprint in contract of $200 mean the following Hardware assembled costs TO Palm: $180 Rough net cost to Palm: $240 Probable cost to Sprint from Palm: $300 That falls win with industry numbers of approximately $100 subsidy cost born by Sprint (buying at $300 selling to customers at $200) on subsidy retail sells and 75% to 80% markup on non subsidy sales. 800 is not the no contract price $550 is. That is probably double the Palm cost including R&D on the hardware, OS development, licensing (palm is actually licensing from Microsoft and qualcomm, and others) .
The estimate on the parts is probably high as prices keep dropping

Here is a guesstamate:
-parts $170
-assembly/testing $10
-HW R&D (depends on how they account): ~15
-OS (also depends on how accounted and whether they recapture at 500k or 3million ~20
- Marketing $5
- support Tech and Warrant $15
-Palm costs Licensing of 3rd party IP : $20.

There are a lot of variables but the likely rough numbers given the hardware, the no contract list of $550 and the Sprint in contract of $200 mean the following

Hardware assembled costs TO Palm: $180
Rough net cost to Palm: $240
Probable cost to Sprint from Palm: $300

That falls win with industry numbers of approximately $100 subsidy cost born by Sprint (buying at $300 selling to customers at $200) on subsidy retail sells and 75% to 80% markup on non subsidy sales.

]]> By: Jake http://www.crunchgear.com/2009/06/06/guess-how-much-it-costs-palm-to-put-the-pre-together/comment-page-1/#comment-1032931 Jake Sun, 07 Jun 2009 15:20:46 +0000 http://www.crunchgear.com/?p=93687#comment-1032931 Go get some manufacuturing experience and than come back and comment. Go get some manufacuturing experience and than come back and comment.

]]> By: Drone http://www.crunchgear.com/2009/06/06/guess-how-much-it-costs-palm-to-put-the-pre-together/comment-page-1/#comment-1032880 Drone Sun, 07 Jun 2009 10:28:33 +0000 http://www.crunchgear.com/?p=93687#comment-1032880 "In addition to labor, one needs to add on the amoritization for equipment and tooling, plus allocations for things such as engineering and general administration. Don’t forget about packaging, marketing and transportation." Nonsense, the thing is contract manufactured. The likes of Crunchgear marketed the thing for them, all they had to do was withhold information and selectively leak it. The rest of the costs are down in the noise compared to the margin. Remember the thing sells for something like $800 true price. Greed... “In addition to labor, one needs to add on the amoritization for equipment and tooling, plus allocations for things such as engineering and general administration. Don’t forget about packaging, marketing and transportation.”

Nonsense, the thing is contract manufactured. The likes of Crunchgear marketed the thing for them, all they had to do was withhold information and selectively leak it. The rest of the costs are down in the noise compared to the margin. Remember the thing sells for something like $800 true price. Greed…

]]> By: Jake http://www.crunchgear.com/2009/06/06/guess-how-much-it-costs-palm-to-put-the-pre-together/comment-page-1/#comment-1032807 Jake Sun, 07 Jun 2009 03:53:35 +0000 http://www.crunchgear.com/?p=93687#comment-1032807 Exactly right. In addition to labor, one needs to add on the amoritization for equipment and tooling, plus allocations for things such as engineering and general administration. Don't forget about packaging, marketing and transportation. Plus there's a profit margin on top of all of this. Suddenly that $800 no-contract price starts to make sense. Exactly right. In addition to labor, one needs to add on the amoritization for equipment and tooling, plus allocations for things such as engineering and general administration. Don’t forget about packaging, marketing and transportation. Plus there’s a profit margin on top of all of this. Suddenly that $800 no-contract price starts to make sense.

]]> By: SwissFreek http://www.crunchgear.com/2009/06/06/guess-how-much-it-costs-palm-to-put-the-pre-together/comment-page-1/#comment-1032748 SwissFreek Sun, 07 Jun 2009 00:45:46 +0000 http://www.crunchgear.com/?p=93687#comment-1032748 OK, go threadjacking. ANYWAY, just a reminder that $170 is what it costs to buy all the parts, not to actually assemble the device. Not the same thing. $170 would just get you a bag of parts. Not a Pre, and no WebOS. OK, go threadjacking.

ANYWAY, just a reminder that $170 is what it costs to buy all the parts, not to actually assemble the device. Not the same thing. $170 would just get you a bag of parts. Not a Pre, and no WebOS.

]]> By: Robby http://www.crunchgear.com/2009/06/06/guess-how-much-it-costs-palm-to-put-the-pre-together/comment-page-1/#comment-1032741 Robby Sun, 07 Jun 2009 00:07:04 +0000 http://www.crunchgear.com/?p=93687#comment-1032741 Why didn't you also tell us a bit about Ghettos, Nazis, Gas Chambers as well, now that since this article is on Pre. "Kid" behind the counter ? Yep, Palm hired my 7 year kid newphew to help them in their operations. Love ya. Why didn’t you also tell us a bit about Ghettos, Nazis, Gas Chambers as well, now that since this article is on Pre.

“Kid” behind the counter ? Yep, Palm hired my 7 year kid newphew to help them in their operations.

Love ya.

]]> By: iPhone 4 free http://www.crunchgear.com/2009/06/06/guess-how-much-it-costs-palm-to-put-the-pre-together/comment-page-1/#comment-1032714 iPhone 4 free Sat, 06 Jun 2009 22:26:24 +0000 http://www.crunchgear.com/?p=93687#comment-1032714 That would be the cost for 1, when you are mass producing these with parts at cost price it would be more like $60/phone, maybe less That would be the cost for 1, when you are mass producing these with parts at cost price it would be more like $60/phone, maybe less

]]> By: OoTheNigerian http://www.crunchgear.com/2009/06/06/guess-how-much-it-costs-palm-to-put-the-pre-together/comment-page-1/#comment-1032686 OoTheNigerian Sat, 06 Jun 2009 21:29:29 +0000 http://www.crunchgear.com/?p=93687#comment-1032686 Nicholas, your love for Apple should not translate to hate for the Palm PRE. Why do you hate the PRE? Nicholas, your love for Apple should not translate to hate for the Palm PRE.

Why do you hate the PRE?

]]> By: Maj http://www.crunchgear.com/2009/06/06/guess-how-much-it-costs-palm-to-put-the-pre-together/comment-page-1/#comment-1032678 Maj Sat, 06 Jun 2009 21:12:41 +0000 http://www.crunchgear.com/?p=93687#comment-1032678 It is my feeling that using D-day in as a byline in an article about the Palm Pre is grossly inappropriate. "Here's some consumer glut, oh and btw D-day lulz." It is my feeling that using D-day in as a byline in an article about the Palm Pre is grossly inappropriate.

“Here’s some consumer glut, oh and btw D-day lulz.”

]]> By: Palm Pre Saturday review roundup (Eclectic Electronics) http://www.crunchgear.com/2009/06/06/guess-how-much-it-costs-palm-to-put-the-pre-together/comment-page-1/#comment-1032673 Palm Pre Saturday review roundup (Eclectic Electronics) Sat, 06 Jun 2009 21:02:48 +0000 http://www.crunchgear.com/?p=93687#comment-1032673 [...] Curious what others are saying? Check out Twitter for live updates on people who have recently gotten their Palm Pre’s! Wanna know how much Pre components cost? Then head on over to CrunchGear! [...] [...] Curious what others are saying? Check out Twitter for live updates on people who have recently gotten their Palm Pre’s! Wanna know how much Pre components cost? Then head on over to CrunchGear! [...]

]]> By: Daniel http://www.crunchgear.com/2009/06/06/guess-how-much-it-costs-palm-to-put-the-pre-together/comment-page-1/#comment-1032664 Daniel Sat, 06 Jun 2009 20:36:29 +0000 http://www.crunchgear.com/?p=93687#comment-1032664 Thanks for the insightful last paragraph. Thanks for the insightful last paragraph.

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