It Costs Surprisingly Little to Make a Motorola Q

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When the the Motorola Q was released a month or so ago, its $200 price caused many people to jump for joy, and has contributed to strong early sales of this device.

At the same time, though, this low price caused some to wonder if Verizon Wireless was selling the device at or below cost as a way to get people to sign up for this carrier’s expensive cellular-wireless data plans. The cheapest plan that can be used with this device costs $80 a month

However, according to market-research firm iSuppli, this isn’t the case, as Motorola can produce a Q for just $158, well below the $200 selling price for this smartphone.

The Breakdown

iSuppli employees have put together a list of the major components in the Motorola Q and what each one costs.

Component Price
320-by-240-Pixel LCD Screen       $25
Memory $22
XScale Processor $19
Digital Baseband $14
Camera $7
Other Components $87
Assembly $8
Total $158

 

This shows that, even when sold at $200 (with a two-year service contract) there’s room for some profit. And there’s even more profit to be made from the people who opt for a one-year contract, as the device costs them $349.

Naturally, this calculation excludes non-material costs, such as shipping, logistics, and marketing.

Still, iSupply thinks the release of the Q will be a watershed for the smartphone market. “Given the Q’s price point, and Motorola’s overall market leverage, this phone likely will succeed in reducing the pricing for smart phones overall, boosting acceptance among users who might flinch at the higher price point established by previous PDA and smartphone products,” said Andrew Rassweiler, a senior analyst for iSuppli.

More About the Motorola Q

Despite being both thin and light, this smartphone boasts a built in QWERTY keyboard.

This device runs Windows Mobile 5.0 for Smartphone, and therefore its 320-by-240-pixel display does not function as a touchscreen.

The Motorola Q supports Microsoft’s new push email system, but it isn’t just be about email. It is able to play music in a variety of formats and it sports dual speakers. A miniSD slot offer additional storage for music and other types of files.

It includes a 1.3 megapixel camera and Bluetooth short-range wireless networking.

Currently, this smartphone is available only from Verizon so it uses the CDMA wireless standard. A GSM version is expected at some point in the future.

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Via The Inquirer

 

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