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Palm Pre costs $170 to make

Palm Inc's highly anticipated Pre smartphone costs around $170 to make, according to analysis by research group iSuppli released on Wednesday.

Although the Pre has not yet shipped and Palm has yet to announce a release date, iSuppli said it generated the estimate of the device's hardware and manufacturing costs based on second-quarter component and assembly pricing.

ISuppli expects Palm will try to sell the Pre to wireless carrier Sprint Nextel Corp for about $300, but said the actual cost to consumers will be around $200 due to an expected carrier subsidy.

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