‘Made in USA’ Comes Cheap for Moto X, Teardown Finds

The idea that putting together electronic devices in the U.S. is far too expensive has become a popular belief over the past decade, and while there are good reasons to believe in that sentiment, there are also reasons to think otherwise. A teardown of the Moto X has revealed that while the device costs $226 to build, only an extra $4 is added on to the price when assembling it in the U.S.

Since Motorola used its "Made in Texas" label as a way to attract patriotic customers, it received the benefit of more buyers without almost any price increase. Although the Moto X is cheaper than the iPhone, it retails for a hefty $579 without a contract.

Assembled in America

The customization options were marketed quite a bit by Motorola, but its "Made in America" credentials were marketed extensively in almost all of the Moto X advertisements. Since the Moto X is assembled in Fort Worth, Texas, Motorola was able to increase its customization options without adding a significant amount of time to the shipping process.

In total, the Moto X costs $226 to manufacture and has a $12 assembling cost, according to a teardown analysis by IHS researchers. Compared with most manufacturers in Asia, which other smartphone companies use, the assembling price only increases by $4 to $5.

The minimal price difference, combined with Motorola's ability to provide dozens of color customization options, has allowed the Moto X to gain attention so far. By assembling the units in Texas, a custom device ships within four days of ordering.

First Motorola/Google Phone

Despite retailing for a lower price than the iPhone 5, the Moto X actually costs $19 less to manufacture. The Samsung Galaxy S 4 on the other hand, costs $11 more than the Moto X. These price differences come from the agreement that Motorola...

Comments are closed.