Okay, let’s be honest with ourselves here. We’ve never really been fans of Motorola’s Moto X from the very beginning, calling it The Most Overhyped Phone of The Year and A Phone Apple Would Be Proud Of. Surely we never really started off with this phone on the right foot, however Motorola is almost entirely responsible for this problem. The Moto X was overhyped by Google as a customizeable phone when in reality, you can change the physical appearance and that’s about it. The phone launched at an overpriced $529 off contract which put the device in the high-end of smartphone pricing and at $199 on contract, made it unpalatable to most buyers.
Now, since the launch of the much more affordable and value-packed Moto G ($179) and the start of a new year, Motorola has dropped the price of the Moto X to $399. While this is an admirable gesture on the part of the Google owned company, it simply is too little, too late. The Nexus 5 ships with far superior hardware and software (it gets all of the updates immediately, unlike the Moto X) and today it sells for $50 less than the just price dropped Moto X. The Moto X could, in practice, be a successful device at $299 especially if Google encourages users to heavily ‘customize’ which could easily bring up the price of the phone. By doing so, Motorola not only gives users more choice, but they have an opportunity to increase satisfaction and ASP.
The real truth is that Motorola’s Moto G is a great device for the money and the Moto X isn’t, even at $399. If Motorola wants to be successful they need to build a quality midrange device like the Moto X at a midrange price of about $299-$349. And then if they choose to participate in the premium market, they are going to need to make sure that device has premium specifications, marketing, and materials. I suspect we will see something like this from Samsung with the Galaxy F series of phones. If they can pull it off, I suspect we’ll see Motorola do the same. But for now, the Moto X still isn’t that great of a deal compared to the Nexus 5 and because of that the $399 price still isn’t good enough.