Moto X Teardown Reveals that Made in USA Costs $5 Extra

The Moto X smartphone is an interesting device not only because it's one of the first Google-influenced Android devices from Motorola, but also because it's made in the U.S. In a sea of consumer electronics that are made in Asia, having a domestically assembled is both notable and unusual.

A teardown analysis by research firm IHS revealed that manufacturing costs for the Moto X are around $12, which is $4 or $5 higher than comparable phones that are made in Asia. A fist full of dollars may not sound like much when talking about one device, but the cost is significant when multiplied by hundreds of thousands of phones.

The added cost of producing the Moto X in Texas, however, has enabled Motorola to offer a customization program where consumers can customize the color scheme of their devices without a significant impact on delivery time. Currently this service is only offered to AT&T customers.

The total cost to build the Moto X comes to an estimated $221, with the major costs being the main processor for $28 and the AMOLED display at $62.50.

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  • kawininjazx
    It cost $221 to make and costs hundreds more, just like iPhones. How come google can sell the Nexus 7 with such a low profit margin and phones are 2-3x profit?
    5
  • xtec
    Five dollars isn't that much and would not keep any one from buying this phone..except it will be triple that or more at retail. The middle men have to make their 300 to 400%.
    And by the way it wont cost Motorola any thing, unless they don't sell, because its all passed on to the customer.
    3
  • descalada
    Anonymous said:
    It cost $221 to make and costs hundreds more, just like iPhones. How come google can sell the Nexus 7 with such a low profit margin and phones are 2-3x profit?


    Remember this is just the manufacturing cost. This doesn't take into account the cost of developing the phone's hardware, software integration, and the countless testing cycles to get to the finished product. There is a lot of investment and overhead just to get to this point. Moto and all other handset manufacturers need to recoup the costs of this investment. Think of it like movies. The cost of a single DVD is 20 cents or less, but you pay $20 and receive a movie that may cost hundreds of millions of dollars to make.
    5