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The Motorola Moto DVX: Lower cost Moto X, but don’t expect too much

A cheaper Motorola Moto X is on the way, and that is tipped to be the Moto DVX. Even back on the launch date of the Motorola Moto X it was revealed that a cheaper version of the Moto

Moto X Feature

 X could be in the works. This was touted as the version that could be released internationally. Motorola’s Texas plant only produces 100,000 Moto X phones a week. That is not really all that many to go around for an international release. A cheaper Moto X would be manufactured in China where it could be built in larger quantities and with a lower cost of assembly.

How much cheaper would a Moto DVX be? The Bill of Materials (cost of parts) or BOM, plus manufacturing costs for the Moto X is estimated at US$226. This is a bit on the high side. To put things into perspective, the Apple iPhone 5S has an estimated BOM and manufacturing cost of US$199. The Samsung Galaxy S4 has an estimated BOM and manufacturing cost of US$237.

Motorola could cut manufacturing cost on Moto DVX by not including the two Texas Instruments co-processors designed to facilitate the touchless control and active notification features of the Moto X. With active notification removed, there would be no need for a Super AMOLED display, and a less expensive IPS panel could be used. These changes would really just cut the Moto DVX BOM by about US$10~15. More savings will come from manufacturing in China, but this would apparently just be additional savings of about US$8 per unit.

In order to get more substantial reduction in costs, this would have to be generated by producing phones, and ordering parts, in larger quantities. In that respect, Motorola will not be able to match Apple or Samsung which order parts for more as many 10 million units for the most popular models in a single quarter. Basically,cutting costs is not all that easy. Temper your expectations and you will be much happier when you finally see the Moto DVX.

I would not expect anything like a US$299 Nexus 4. Well, not unless Google decides to subsidize the Moto DVX. If it is not subsidized, I would expect an off-contract price of aroundUS$449. I did not make that estimate by computing actual cost. I did not pull that figure out of a hat either. All things considered, that is the price Motorola needs to hit to place something in competition with the Apple iPhone 4S and Android “mini”  phones.