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June 6, 2009 1:32 PM PDT

After dismantling, Palm Pre is estimated to cost $170

by David Carnoy
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We can rebuild it, no problem.

(Credit: RapidRepair)

For those of you who enjoy seeing the latest and greatest gear in pieces, RapidRepair has already torn apart the Palm Pre just hours after the first units became available.

Once the thing was completely ripped apart, the folks at RapidRepair tallied up the price for each component and determined that it costs Palm around $170 to build the Pre. How accurate that number truly is, we can't tell you. But what we do know is that the Pre will cost you $199 (with a $100 mail-in rebate and two-year service agreement).

Anybody think these teardowns are silly? Or do they provide useful info?

Source: RapidRepair (see more pics)

Additional reading: CNET's Palm Pre review

Hunkered down in New York City, Executive Editor David Carnoy covers the gamut of gadgets and writes his Fully Equipped column, which carries the tag line "The electronics you lust for." He's also the author of "Knife Music," a novel. E-mail David. Follow David on Twitter.
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by Cruton June 6, 2009 2:21 PM PDT
I think its great to get an idea of each component cost. One thing that will always be hard to predict though is the money put into development: prototypes, software, planning etc.
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by bleech June 6, 2009 2:46 PM PDT
Silly.
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by externallain June 6, 2009 3:09 PM PDT
As Cruton said, I think these tear downs are a great idea. I would be interested to see how the component costs compare to the current iPhone (not that the components are the same but just to compare actual hardware costs). I am sure there's a tear down for the iPhone out on the intertubes somewhere already but I am just to lazy to search it out.
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by tipoo_ June 6, 2009 3:11 PM PDT
What processor does it use? The Cortex maybe?
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by pkennedy June 6, 2009 5:13 PM PDT
while they were at it... hope they did a video for a 'how to'...
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by cvaldes1831 June 6, 2009 5:18 PM PDT
These teardowns are silly.

They just provide a parts list/BOM/COGS without factoring in development, assembly, packaging, sales & marketing, and distribution costs. There is probably no accounting for royalty/technology licensing payments as well.

Whether or not the device is actually designed well enough (e.g., is the antenna adequately placed for better reception) of if the actually components are any good (how is the screen's legibility under bright sunlight, does the camera work OK in low light situations) aren't addressed.

An operating system is a big complicated piece of software that lets other big complicated pieces of software coexist peacefully on the same system. The more powerful these devices get, the more important the operating system becomes. How good are the graphics software libraries for the accelerated graphics chip? How about the power management routines? Is the compiler any good?

In any case, the hardware costs are just a fraction of the total cost of ownership of a smartphone. The service features, applications, etc. are a big part of how the customer will perceive his/her ownership experience.

People love bashing Apple for their higher prices (a.k.a. "Apple tax"), yet EVERY SINGLE MAJOR CUSTOMER SATISFACTION SURVEY puts Apple owners at the top of the class. Can money buy you happiness? I don't know if there's causation in play here, but if there is, then the answer is a definitive "yes".

Oh, and the July 2008 iSuppli analysis of the iPhone 3G rang in at $175 for the 8GB model, just five dollars more than the Palm Pre.
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by cvaldes1831 June 6, 2009 5:31 PM PDT
Just to clarify, I do not own an iPhone nor any other smartphone, although I do have a first-generation iPod touch. I am a happy owner of a hilariously inexpensive Motorola V195S, a dumbphone with T-Mobile's Pay-As-You-Go service which averages maybe $5 per month. T-Mobile duly unlocked this quadband GSM phone for me, so I can plug in a SIM when I travel.

It's highly unlikely that I will get a smartphone with a standard U.S. carrier contract in the forseeable future. For my purposes, the dumbphone + iPod touch combo is a far better value.
by hess_joel June 7, 2009 7:40 AM PDT
It's nice to know how badly we're getting screwed.
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by tipoo_ June 7, 2009 8:55 AM PDT
How? All companies need to turn a profit on their products, it would be stupid not too. Plus, this doesn't consider Research and Development costs, advertising, ect.
by vfarn June 7, 2009 1:53 PM PDT
Why is it a rip off? It cost $ for design, engineering, and every other overhead (marketing, labor, etc.) for making this phone (and every other product). This is not captured in the parts price breakdown listed above.
by nano404 June 8, 2009 12:41 AM PDT
One word : Wholesale.
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