America Needs Them, Made In America.

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
has with carriers. Motorola only
asks for a $300 subsidy, whereas
Samsung and Apple both ask for
$400 subsidies on their phones.
Motorola’s Moto X uses a year-
old applications processor and
two chips from Texas Instruments
according to the IHS teardown
report.
“What Google and Motorola are
trying to do is not play the game
of ‘bigger is better’ that everyone
else is playing,” said Wayne
Lam, an IHS principal analyst.
“They are looking for ways to
differentiate themselves from the
pack and push the user
experience in a new direction.”
The primary chip, which the Moto
X relies on for most of its
features, is a Qualcomm
Snapdragon S4. According to
IHS, this processor costs around
$28. The chips from Texas
Instruments work to handle
gestures as well as listen for
voice commands and cost just $4
to $5 together.
“Motorola has put together a
novel combination of electronics
and software, and has done it in
a very power-efficient way,” Lam
said.
Compared with other
smartphones that dominate the
market, the Moto X is a nice
addition between its
customization options and its
“Made In America” label.
I think apple and google should have a rethink, it could boost sales you know with patriotic citizens wanting to buy made in America products.

sincerely nathan

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2 thoughts on “America Needs Them, Made In America.

    • Thanks for the comment p&s the idea is to create awareness that america is not all that expensive for this firms or companies to assemble their products, which could help the unemployment in the country. Thanks again.

      Like

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