Report: Moto X could sell for a Nexus-like $300
The Moto X unveiling event is less than a day away and to say I’m hyped would be an understatement. With just about every hardware detail having already been leaked, there’s very little we don’t already know about the X. We’ve seen press images of the front and back of the device, so design and aesthetics are out of the bag (Motorola hasn’t exactly been secretive about this).
When it comes to strong rumors some of the specs we can expect include a 4.7-inch 720p non-Pentile “Magic Glass” display, 1.7GHz dual-core Qualcomm S4 Pro processor, 2GB of RAM, 10MP “Clear Pixel” camera, a plethora of sensors (with a dedicated low-power “core”), no wireless charging, NFC, 2,200mAh battery, and it will even use a tiny nano-SIM card. Nothing that will make tech-junkies smash their current high-end devices, so why is Motorola focusing on a mid-range device?
Throughout all the rumors there’s still been one vital component left unanswered: the price. It’s really the final puzzle piece left on everyone’s mind at this point. With smartphones not exactly getting any cheaper, really, who has the money to plop down $600 for a new phone every few years, let alone one for the wife and kids? Definitely not Apple (yet). Now that Motorola has successfully reeled everyone in with countless their teasers and carefully planned leaks, it seems Nexus-like pricing could be the ace up their sleeves.
A newly published 21-page report from analysts at Goldman Sachs suggests that Google-owned Motorola could offer the Moto X at the base price of $300, much like the Nexus 4. There’s a lot of numbers being thrown around, one of which analysts believe the X will only cost Motorola about $225 to produce, with the rest going into Motorola’s wallet.
While good ‘ol market share is the obvious reasoning behind the aggressive price point, Sachs also believes that if the X were a mainstream success, Google would have a way of providing devices to the masses, effectively bypassing the high rates Apple and Samsung currently charge Google to be the default search engine on their devices. That’s why Google wants to ensure the X is a success (well, that and so they can finally bring Motorola out of the red).
Motorola is pouring a lot of money into a device that for the first time in ages, doesn’t boast the most cutting edge hardware or a huge display, instead focusing on software and features, something that wont be drive up its cost. It’s genius really. Don’t forget the Moto X’s small size puts it in a better position to compete with not only the iPhone, but the new trend of “Mini” devices popping up in Android as of late (would also fill in the 4-inch gap nicely should Google move up to 5-inches for the Nexus 5). I think the Moto X has the potential to be great, now we just have to see if Motorola can deliver.
[Barron’s]