Aug 28 AT 12:56 PM Dima Aryeh 17 Comments

Estimates show Moto X costs $221 to build, $4 premium from US construction


We know a lot of people have been complaining about the price of a Moto X smartphone. Hell, we’ve done plenty of our own complaining. It seems hard to justify paying $200 on-contract if a phone just doesn’t have those high end specs. Not because it isn’t worth it, but because if you can get better specs for the price, why wouldn’t you? Plus, that $580 off-contract price looks so high compared to the new $199 price tag of the Nexus 4.

However, many of us forget what we’re paying for. The Moto X has some really interesting aspects that cost a significant amount of money, making that higher price tag a lot more worth it. In fact, it costs about $221 to build. First of all, the X8 mobile chip can’t be cheap. Yes, it may not be a Snapdragon 800, but it’s complex. Second, the whole system to allow customization probably costs Motorola a lot, and that expense has to be recouped.

But one of the most important things the Moto X has going for it is local manufacturing. Motorola assembles the Moto X here in the US. According to estimates, it costs them $12 per phone to do so. Comparatively, it costs Apple $8 to manufacture the iPhone 5 and Samsung $8.50 to manufacture the Galaxy S 4. While $4 doesn’t seem like a lot, it really adds up over hundreds of thousands of phones shipped. I’d pay a premium for that.

These estimates are just that: estimates. The official numbers have not been released, so take this with a grain of salt. However, it’s the best information currently out there. Does that premium seem a little more worth it? Or is the Moto X still poorly priced, despite costing quite a bit to make? Leave a comment!

Source: The Verge

Dima Aryeh is a Russian obsessed with all things tech. He does photography, is an avid phone modder (who uses an AT&T Galaxy Note II), a heavy gamer (both PC and 360), and an aspiring home mechanic. He is also an avid fan of music, especially power metal.

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