In the past year, both Apple and Google have announced plans to make some of their cell phones in the US. Motorola (now owned by Google) has begun producing their Moto X in Fort Worth, Texas, making it the first cellphone to carry the “Made in the USA” designation.
Now that production is well underway (the phone went on sale last week at AT&T), research firm IHS has announced some exciting news surrounding the assembly cost of the Moto X. The cost of American assembly of the phone? A mere $3.50-4 more than phones assembled in Asia. Labor costs are more for the American-made phone as US jobs pay better, however the cost of transportation to the US offsets the labor costs.
But what about the rest of the phone’s production? IHS found that the Moto X’s overall production cost is just 9% more than that of Apple Inc.’s iPhone 5 while being 5% less than the Samsung Galaxy S4.
So doubters, take that. American-made electronics can be cost-competitive with those made overseas. Hopefully we’ll see more examples to come!