Palm Pre Touchstone Worth $5?

Wow – the Palm Pre Touchstone, after having its innards ripped out today, was estimated to cost around $5 in terms of components, making us wonder just how much inflated the $70 price tag is. Well, we suppose there are other hidden costs that have yet to be factored in including research and development, marketing and manufacturing, but surely those won’t even amount up to half the $70 price point? What do you think?