Whether this figure reflects the contract or full retail price is unknown, but the blogger also states that the price of an unlocked GSM version in Europe will run between $500 and $550. Obviously, this is only a rumor and should be treated as such—but it will be interesting to see if Palm does indeed price themselves into oblivion on this one. Let's hope not—Palm may actually have something going here. [LiveJournal via Electronista]
What the iPhone charged two years ago isn't important. What's important is what's available now. The Pre looks like a very good alternative to the iPhone 3G. I would say that they both are very much on-par with each other feature wise. Apple has a better media management system and app store up and running. The Pre has better storage capacity (removable), working bluetooth and a removable battery. So, my guess is that they will have to be similarly priced for both of them to remain competitive.