Moto X costs $23 less than the Galaxy S 4 to build

August 28, 2013

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Earlier in the month, Goldman Sachs estimated the Moto X would cost $214 to build, but research firm IHS has it at $221. What's most interesting is the added cost for the Moto X to be assembled in the U.S. IHS says the overall production cost is $12, but only about $4 or $5 of that is because of U.S. production. Producing a phone in Asia would typically cost about $7 to $8.

In contrary, the Galaxy S 4 costs only $23 more or a total of $244 to build. That includes $8.50 in production costs. One of the big differences between the two phones is the display. The Galaxy S 4's 1080p display costs $75, but the Moto X's 720p display costs $62.50. Interestingly enough, it's made by Samsung. The processor is another area of difference, but not as big as we thought. The Exynos octa-core on the Galaxy S 4 costs $30, but the Moto X's X8 Mobile Computing System isn't too far off at $28. The X8 includes a Qualcomm Snapdragon S4 Pro, but it also includes two additional chips from Texas Instruments for the natural language and contextual computing processors.

So, I and many other experts have been saying that the Moto X is overpriced when you consider the specs. However, it only costs $23 less to produce than the Galaxy S 4. Many of us blamed the fact that it was produced in the U.S. as the biggest culprit, but that only accounts for $4 or $5. If you take that out, the difference sits at $27 or $28. That's not enough of a difference to put the Moto X at Free or $99 on contract. What do you guys think? Now do you feel better about paying $199 for the Moto X on contact?

sources: AllThingsD / IHS for the Galaxy S 4

Robert Nazarian Author

Robert lives in upstate New York where he was born and raised. Technology was always his passion. His first computer was a Radio Shack TRS80 Color that used a cassette tape to save programs, and his first laptop was a Toshiba T1200FB that sported a CGA greyscale screen and two 720kb floppy drives (no hardrive). From the early 90’s through late 2011, he only owned Motorola phones starting with the MircroTAC all the way through to the Droid X. He broke that streak when he bought the Galaxy Nexus. Now he's sporting a Galaxy Note 4, and absolutely loves it. He has a wonderful wife and a 6 year old son. In his free time he enjoys sports, movies, TV, working out, and trying to keep up with the rapid fast world of technology.

3 comments

LOL says:

August 28, 2013 at 4:10 PM

All these comparisons are pointless, you still have to take into consideration of the R&D cost behind all these devices

Reply
1. Laurent Meyer says:
  
  August 28, 2013 at 6:37 PM
  
  I totally agree with you but I think the idea of the article was to show that a device made in the USA doesn’t cost that much compare to Asia.
  
  Reply
  1. Kary says:
    
    August 29, 2013 at 10:03 AM
    
    Made in America means you can’t get your employees to work 16 hour shifts, and have work totally dominate their lives. That affect production schedules more than cost.
    
    So beyond R&D costs, you also probably need to look at production volume. Compare the first two months sales of the S4 to the X.
    
    Reply