EL SEGUNDO, Calif.—Not only has Motorola Inc.’s Q device set a new low point for smart-phone pricing at around $200, it also has achieved a low production cost as well, with materials and manufacturing costs of only $158, according to a teardown analysis completed by iSuppli Corp.
The analysis concludes the Q phone includes $150 worth of components and costs $8 to make, not including shipping, marketing and other channel expenses. The display module is the most expensive component of the handset at $25, said iSuppli.
Verizon Wireless offers the Q for $200 with a two-year service contract or $350 with a one-year contract. The phone is a dual-band CDMA2000 1x EV-DO smart phone with a QWERTY keyboard, stereo speakers and a digital camera with flash. The device runs Microsoft Corp.’s Windows Mobile operating system.
“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-than-$200 price point established by previous personal digital assistant/smart-phone products.” said Andrew Rassweiler, teardown services manager and senior analyst for iSuppli.
