US-made Moto X‘s labour cost less than Galaxy S4

Motorola's new Moto X phone doesn't cost more to make simply because it's assembled in Texas, research firm IHS.
The Moto X is the first smartphone to carry the "Made in the USA" designation. Labor costs are higher in the US compared with Asian factories, where phones are typically made. But IHS said the Moto X is about 5 percent cheaper to make than Samsung Electronic's flagship Galaxy S4phone. The firm said the Moto X's overall production cost is just 9 percent more than that of Apple's iPhone 5.

The findings come as little surprise, as the labor cost of a phone is just a small part of its production cost. IHS estimates that labor and other assembly costs Motorola $12 per phone for the Moto X, bringing the production cost to $226. That compares with $207 for the iPhone 5 and $237 for the Galaxy S4. IHS said Motorola is able to keep the cost of parts low by using standard components that don't break much new ground.
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