Home
Mobiles
Mobiles News
Moto X costs just $226 to make despite 'Made in USA' tag

Moto X costs just $226 to make despite 'Made in USA' tag

By Associated Press | Updated: 16 September 2013 17:05 IST

Motorola's new Moto X phone doesn't cost more to make simply because it's assembled in Texas, research firm IHS said Wednesday.

The Moto X is the first smartphone to carry the "Made in the U.S.A." designation. Labor costs are higher in the U.S. compared with Asian factories, where phones are typically made. But IHS said the Moto X is about 5 percent cheaper to make than Samsung Electronic Co.'s flagship Galaxy S4 phone. The firm said the Moto X's overall production cost is just 9 percent more than that of Apple's iPhone 5.

(Also see: Google unveils Moto X, a customisable Android smartphone)

The findings come as little surprise, as the labor cost of a phone is just a small part of its production cost. IHS estimates that labor and other assembly costs Motorola $12 per phone for the Moto X, bringing the production cost to $226. That compares with $207 for the iPhone 5 and $237 for the Galaxy S4. IHS said Motorola is able to keep the cost of parts low by using standard components that don't break much new ground.

By assembling the phone in Fort Worth, Texas, Motorola is able to let customers order custom designs online for delivery within four days. Standard black or white models are available immediately at retail stores.

"With the Moto X, Motorola is reaping the public-relations and customization upsides of producing a smartphone in the United States, while maintaining competitive hardware costs," said Andrew Rassweiler, senior director for cost benchmarking services at IHS.

IHS said the estimated $12 for assembly is about $3.50 to $4 more than other leading phones.

"Our initial estimate suggests the additional costs of onshoring the Moto X are relatively low," IHS said.

The phone went on sale last Friday, starting with AT&T. It's coming to other carriers, including Verizon this week. The Moto X's price is about $200 with a two-year service agreement.

The Moto X is Motorola's first phone designed from the start under its new owner, Google Inc. The Internet search company bought Motorola Mobility for $12.4 billion last year.

Google's Moto X in pictures

Motorola Moto X

REVIEW
KEY SPECS
NEWS

Design
Display
Software
Performance
Battery Life
Camera
Value for Money

Good
Stock Android experience
Handy software enhancements
Minimalistic design and ergonomics

Bad
Limited storage
Average camera performance
Mediocre battery life

Read detailed Motorola Moto X review

Display 4.70-inch

Processor Qualcomm Snapdragon S4 Pro (MSM8960AB)

Front Camera 2-megapixel

Rear Camera 10-megapixel

RAM 2GB

Storage 16GB

Battery Capacity 2200mAh

OS Android 4.2

Resolution 720x1280 pixels

More Motorola mobiles Motorola mobiles price in India

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.