BusinessWeek Online has a report up breaking down the cost to make the Motorola Q, as well as that of its competitor, the BlackBerry 8700. According to market research firm iSuppli, which did the analysis of the Q, the decive costs Motorola about 158 USD to make. That includes components and assembly but excludes other expenses such as marketing, distribution, and licensing fees to Microsoft for the Q’s Windows Mobile OS.
The Q is sold by Verizon Wireless at a heavily subsidized 199 USD with a two-year service contract, and 349 USD with a one-year contract. Typically, the mobile-phone service provider absorbs some of the cost of subsidizing a handset or other wireless equipment. In comparison, the BlackBerry 8700 costs 123 USD to make and sells for 299 USD from Cingular Wireless.
The Q’s single most expensive component? The LCD display, which costs about 25 USD.