US-made Moto X's cost comparable to Asian-assembled smartphones

By Rhoda Miel
News Editor

Published: August 28, 2013 3:53 pm ET
Updated: August 28, 2013 3:59 pm ET

Image By: IHS Inc. A teardown study of the Moto X phone, which is made in Texas, shows it is cost-competitive with smartphones assembled in Asia

Related to this story

Topics Electronics, Reshoring, Telecommunications

Google Inc.'s Motorola Mobility group may be changing the hard and fast business rules when it comes to consumer electronics by showing U.S. production does not add much to the overall cost, says the consulting group IHS.

Motorola opted to build the new Moto X in Fort Worth, Texas, at a plant overseen by its manufacturing partner Flextronics International Ltd., rather than Asia, which is typically used in electronics to reduce production costs.

In a teardown study of the phone, released by IHS of Englewood, Colo., on Aug. 29, building the phone in Texas only adds $3.50 to $4 to the cost of the phone.

Total production costs, including manufacturing, are estimated at $226 by IHS. That compares to $237 to build the competing Samsung Galaxy S4 and an estimated $207 for Apple's iPhone 5.

The extra dollars spent to build in the U.S., however, allows Motorola and Google to tap into positive public relations, said Wayne Lam, senior analyst for wireless communications at IHS. In addition, customers can build a customized Moto X by going online to pick from a mixture of colors for the phone's back plate, front face and accents and still have the finished phone delivered within four days.

With a two-year service contract with a cellular provider, consumers can buy the Moto X for $199, which allows it to compete well against other smart phones, Lam said.

"Motorola is definitely vying to become the lower cost alternative to Apple and Samsung for the wireless carrier partners," he said.


Comments

US-made Moto X's cost comparable to Asian-assembled smartphones

By Rhoda Miel
News Editor

Published: August 28, 2013 3:53 pm ET
Updated: August 28, 2013 3:59 pm ET

Post Your Comments


Back to story


More stories

Image

The return of HPM's big presses

December 19, 2014 11:47 am ET

HPM is back in big injection molding machines.    More

Image

Sabic: Rapid demand growth led to Ultem shortage

December 18, 2014 12:06 pm ET

Sabic Innovative Plastics has been increasing production capacity for its Ultem polyetherimide but it still got caught short by increasing demand for ...    More

Image

Plastics News Now: Polystyrene helps spur honey production

December 18, 2014 6:00 am ET

Bee farmers are crediting polystyrene with an increase in honey production, plastic toymakers lament shipping delays and plastic bag ban backers are...    More

Image

Bubbles add some flair to 'Plain Jane' PET bottles

December 17, 2014 1:05 pm ET

Ron Puvak and the folks over at Plastic Technologies Inc. see big things coming from some very tiny bubbles.    More

Image

Shipping slowdowns add to season's stress

December 16, 2014 4:02 pm ET

Toy companies know what they want for Christmas: an end to crippling shipping delays at West Coast ports.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events