The touch screen is expected to be the most expensive portion of the device, costing Palm about $39.51, while Qualcomm is expected to provide the wireless connectivity for $15.41 and Texas Instruments the processing power through an $11 applications chip from the so-called OMAP family of processors aimed at handsets. Other costs include the Preís 8GB of flash storage, tagged at $15.96, a 3-megapixel camera for $12.39 and about $22.61 in non-hardware-related costs from licensing software and royalties on patents.
The assumption is that Palm will charge exclusive provider Sprint $300 per handset, and that the carrier will likely sell the handset with a $100 subsidy. While it's hard to predict demand for the Pre, analysts figure Palm will make a healthy profit from the units it does sell.
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