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1st US-made smartphone isn't more expensive

11:56 AM, Aug 28, 2013   |    comments
A view of atmosphere at Moto X Launch Event on August 1, 2013 in New York City. (Photo by Jamie McCarthy/Getty Images for Motorola Mobility)
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NEW YORK (AP) - A research firm says Motorola's new Moto X phone doesn't cost more to make simply because it's assembled in Texas.

The Moto X is the first smartphone to carry the "Made in the U.S.A." designation. Labor costs are higher in the U.S. compared with Asian factories, where phones are typically made. But researchers at IHS say that overall cost for parts and labor is cheaper than Samsung's Galaxy S4, by about 5 percent. IHS says the Moto X is just 9 percent more expensive to make than that for Apple's iPhone 5.

As previously reported, labor is a small part of a phone's overall cost. IHS estimates the labor cost at $12 per phone for the Moto X, bringing the overall production cost to $226.

The Moto X went on sale last Friday.

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