Motorola Moto X has just $12 in US manufacture costs ($209 in parts)


A recent teardown of the new Motorola Moto X mid-range smartphone has revealed some interesting figures, the first being that the total cost of the phone in manufacturing sets the company back approximately $221.

The phone is gaining attention for being one of the rare models that is manufactured in the US, rather than China where the bulk of phones are built by the likes of Foxconn and other OEMs.

According to website AllThingsD, the IHS team that deconstructed the phone believes the Qualcomm Snapdragon S4 CPU is likely to have cost around $28 per unit.

But what was in some ways more astonishing was that IHS was able to put a total cost on parts of $209 – by inference, the suggestion is that it costs just $12 per phone to manufacture it in the US, or around $4 to $5 cheaper than you’d pay in Asia.

Now in terms of manufacturing costs, $7 beats $12 by a decent margin – but when you factor it in against total costs, the total cost of manufacture in Asia would still be around $216-217 – not enough of a difference to make any noticeable impact in the final retail price.

Given that the Moto X uses CPUs from US companies Qualcomm and Texas Instruments, there is a decent amount of local sourcing so it’s likely that other US electronics manufacturers will be looking on Google’s Motorola US-made experiment with interest, as will governments who will no doubt be looking at the numbers with an eye to retaining and creating local employment.

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