1st US-made smartphone just as cheap to produce

Published August 29, 2013
The Motorola Moto X smartphone, using Google's Android software, is shown, Thursday, Aug. 1, 2013 at a press preview in New York. — AP Photo
The Motorola Moto X smartphone, using Google's Android software, is shown, Thursday, Aug. 1, 2013 at a press preview in New York. — AP Photo
The Motorola Moto X smartphone, using Google's Android software, is displayed, Thursday, Aug. 1, 2013 at a press preview in New York. In the background is a Deck, from Sol Republic, which is a wireless speaker that operates up to 300 feet from the phone using Bluetooth technology. — AP Photo
The Motorola Moto X smartphone, using Google's Android software, is displayed, Thursday, Aug. 1, 2013 at a press preview in New York. In the background is a Deck, from Sol Republic, which is a wireless speaker that operates up to 300 feet from the phone using Bluetooth technology. — AP Photo
Motorola Moto X smartphones, using Google's Android software, are shown, Thursday, Aug. 1, 2013 at a press preview in New York. The back of the phone is available in 18 colors. — AP Photo
Motorola Moto X smartphones, using Google's Android software, are shown, Thursday, Aug. 1, 2013 at a press preview in New York. The back of the phone is available in 18 colors. — AP Photo

New York - 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 USA." designation. Labor costs are higher in the US 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.

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.

Opinion

Rule by law

Rule by law

‘The rule of law’ is being weaponised, taking on whatever meaning that fits the political objectives of those invoking it.

Editorial

Isfahan strikes
Updated 20 Apr, 2024

Isfahan strikes

True de-escalation means Israel must start behaving like a normal state, not a rogue nation that threatens the entire region.
President’s speech
20 Apr, 2024

President’s speech

PRESIDENT Asif Ali Zardari seems to have managed to hit all the right notes in his address to the joint sitting of...
Karachi terror
20 Apr, 2024

Karachi terror

IS urban terrorism returning to Karachi? Yesterday’s deplorable suicide bombing attack on a van carrying five...
X post facto
Updated 19 Apr, 2024

X post facto

Our decision-makers should realise the harm they are causing.
Insufficient inquiry
19 Apr, 2024

Insufficient inquiry

UNLESS the state is honest about the mistakes its functionaries have made, we will be doomed to repeat our follies....
Melting glaciers
19 Apr, 2024

Melting glaciers

AFTER several rain-related deaths in KP in recent days, the Provincial Disaster Management Authority has sprung into...