PALM Pre Trade Reports

Trade and press reports are speculating that Palm, Inc. (PALM) will release a downsized, cheaper version of the Pre phone code named the Pixie. Other reports suggest that Palm will not release the Pre in May as speculated but will wait until June 7.

iSupply, a major consulting firm, has suggested that the Pre will cost $170 to produce. Research In Motion's (RIMM) gross margin for fiscal 2009 was 46%, suggesting that the selling price of the Pre could be $300 or more.

If Sprint (S) sells the Pre at a subsidized price of $200, then either Sprint swallows $100 per phone or Palm will give Sprint a discount. In which case there will not be much profit for either Sprint or Palm during the initial part of the sales cycle.

Read the full analyst report on PALM

Read the full analyst report on RIMM

Read the full analyst report on S