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Breaking it down: the cost of the Moto Q

Breaking it down: the cost of the Moto Q

Ever wonder how much your cell phone or smart phone actually costs to make? Well, if you have a Motorola Q, here's your answer: $158. The clever folks at market research firm iSuppli took apart the Q and priced each component of the smart phone to come up with the magic number. (You can see the full breakdown here.) The firm went on to say that the device's low price and inexpensive design make it a key asset for Motorola as it tries to gain market share. Right now, Motorola is in the number two position among mobile phone makers, right behind Nokia. However, some analysts believe the company is being a bit too optimistic about Q sales. "There is a market for smart phones, and particularly for the 'smart phone-lite,' which is what the Q is. But I think it's going to take a while for consumers to realize they need it. It's a very different product than the Razr," said Susan Kalla, managing director of research for equities firm Caris & Company. As you may recall, Ron Garriques, president of Motorola's Mobile Division, said sales of the Moto Q have been doing so well that he predicts carriers will drop the subsidized price from $200 to $50 by the end of the year. Currently, Verizon Wireless sells the Q for $199 with a two-year contract or $349 with a one-year contract. For more on this story, check out Marguerite Reardon's piece on CNET News.com.