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Author Topic: IHS: Moto X Parts/Assembly Totals $221 Per Phone: Comparable To Other Flagships  (Read 661 times)

Offline Babyfacemagee

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IHS, a market research firm formerly known as iSuppli did a teardown analysis of the Moto X and unlike the one we saw last week from iFixit, IHS totaled up the price of the various components of the Moto X and added in an assembly cost to come up with a total cost per Moto X phone.   At $221, the Moto X pays a price of an extra $4 or $5 for its being built in the US at the Texas plant as compared to if it were built overseas.  Still, the cost is fairly comparable to other flagship devices if we use similar teardowns done by the company of the Galaxy S4 ($237) and the iPhone5 ($207). 

“What Google and Motorola are trying to do is not play the game of ‘bigger is better’ that everyone else is playing,” said IHS analyst Wayne Lam. “They are looking for ways to differentiate themselves from the pack and push the user experience in a new direction.”  "Motorola is paying a premium for a made-in-America phone, but it's also giving them the ability to do the customization work easily," Lam told AllThingsD.

So it seems the additional cost of building the Moto X has been far outweighed by the positive marketing boost that the 'Made In The USA' label gives the handset.  A gamble nicely won by Motorola.


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