Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED.
Let an ISACA® certification
elevate your career.

Register today and save
Chips & Processors
Next Generation Data Center Is Here!
Average Rating:
Rate this article:  
'Made in USA' Comes Cheap for Moto X, Teardown Finds

By Seth Fitzgerald
August 28, 2013 3:38PM

    Bookmark and Share
In total, the Motorola Moto X smartphone costs $226 to manufacture and has a $12 assembling cost, according to a teardown analysis by IHS researchers. Compared with most manufacturers in Asia, which other smartphone companies use, the assembling price only increases by $4 to $5. The Moto X uses a year-old Qualcomm processor and two chips from Texas Instruments.
 



The idea that putting together electronic devices in the U.S. is far too expensive has become a popular belief over the past decade, and while there are good reasons to believe in that sentiment, there are also reasons to think otherwise. A teardown of the Moto X has revealed that while the device costs $226 to build, only an extra $4 is added on to the price when assembling it in the U.S.

Since Motorola used its "Made in Texas" label as a way to attract patriotic customers, it received the benefit of more buyers without almost any price increase. Although the Moto X is cheaper than the iPhone, it retails for a hefty $579 without a contract.

Assembled in America

The customization options were marketed quite a bit by Motorola, but its "Made in America" credentials were marketed extensively in almost all of the Moto X advertisements. Since the Moto X is assembled in Fort Worth, Texas, Motorola was able to increase its customization options without adding a significant amount of time to the shipping process.

In total, the Moto X costs $226 to manufacture and has a $12 assembling cost, according to a teardown analysis by IHS researchers. Compared with most manufacturers in Asia, which other smartphone companies use, the assembling price only increases by $4 to $5.

The minimal price difference, combined with Motorola's ability to provide dozens of color customization options, has allowed the Moto X to gain attention so far. By assembling the units in Texas, a custom device ships within four days of ordering.

First Motorola/Google Phone

Despite retailing for a lower price than the iPhone 5, the Moto X actually costs $19 less to manufacture. The Samsung Galaxy S 4 on the other hand, costs $11 more than the Moto X. These price differences come from the agreement that Motorola has with carriers. Motorola only asks for a $300 subsidy, whereas Samsung and Apple both ask for $400 subsidies on their phones.

Motorola's Moto X uses a year-old applications processor and two chips from Texas Instruments according to the IHS teardown report.

"What Google and Motorola are trying to do is not play the game of 'bigger is better' that everyone else is playing," said Wayne Lam, an IHS principal analyst. "They are looking for ways to differentiate themselves from the pack and push the user experience in a new direction."

The primary chip, which the Moto X relies on for most of its features, is a Qualcomm Snapdragon S4. According to IHS, this processor costs around $28. The chips from Texas Instruments work to handle gestures as well as listen for voice commands and cost just $4 to $5 together.

"Motorola has put together a novel combination of electronics and software, and has done it in a very power-efficient way," Lam said.

Compared with other smartphones that dominate the market, the Moto X is a nice addition between its customization options and its "Made In America" label.
 

Tell Us What You Think
Comment:

Name:





 Chips & Processors
1.   China To Call Qualcomm a Monopoly
2.   IBM Earmarks $3B for Next-Gen Chips
3.   Intel Heralds New Xeon Server Chip
4.   Intel Aims To Eliminate All PC Cables
5.   Intel Clocks 4 GHz in New Core i7


advertisement
China To Call Qualcomm a Monopoly
Cracking down on foreign companies.
Average Rating:
IBM Earmarks $3B for Next-Gen Chips
R&D plan targets cloud and Big Data.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Canadian Government Charges China With Cyberattack
The government of Canada is not happy with China. Canadian officials have accused "a highly sophisticated Chinese state-sponsored actor" of launching a cyberattack on its National Research Council.
 
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 

Enterprise Hardware Spotlight
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
 
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 

Mobile Technology Spotlight
Android 'Fake ID' Puts Millions of Users at Risk
Having this fake ID is nothing to brag about, even if you are a minor. The “Fake ID” Android flaw drops malware into smartphone apps. It can steal credit card data and even take over your device.
 
FTC Wants Fix for 'Perfect Scam' of Mobile Cramming
The U.S. Federal Trade Commission has issued new guidelines to curb “mobile cramming,” a troublesome practice that adds unauthorized third-party charges to mobile phone bills.
 
Facebook: You Will Use Messenger, and You Will Like It
Starting this week, Facebook users with Android and iOS phones will be forced to use the separate Messenger app to send Facebook messages. Pending messages will still be visible in the main app.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.