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
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