This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Moto X: And the Price Wasn't Even Right

NEW YORK ( TheStreet) -- Everything I said in my recent article about my expectations for Motorola X came true, except it was one step worse.

I said the device will be mediocre compared to the best Androids that Samsung and others have to offer, but that the situation could be saved by a killer price -- just as what Google (GOOG) does with the SIM-unlocked, contract-free, LG Nexus 4.

But in the end, it turns out it wasn't even cheaper.

And there is no new interesting sales model.

Motorola brings the Moto X to market with the same tired and expensive operator contract model that has been plaguing the U.S. smartphone market for over a decade. With the exception of T-Mobile (TMUS), the other operators bind you for two years and charge you the equivalent of a payday loan for the privilege of carrying their SIM-locked brick until a year after its warranty has expired.

There is, as yet, no unlocked, no-contract price for the Moto X. In the meantime, the overpriced prison-style contract pricing is $200 for the 16-gig version, and $250 for the 32-gig version.

Hey, at least Motorola exposes Apple's (AAPL) insanely greedy memory pricing by charging you only $50 for the jump from 16 gig to 32 gig. Apple charges you $100 for the identical upgrade. This tells you Apple is on the verge of a margin collapse: Competition, it hurts.

Depending on the operator and the channel, you can get a class-leading Samsung Galaxy S4 or HTC One for $100 or $200 on a two-year contract. In comparison to those, the Moto X offers you a one-year-old CPU and 720p screen resolution instead of 1080p resolution. Well, thank you for selling me a device with one-year-old specs at the same or double the upfront price!

Android 4.3: What's that?

If the hardware is a year old, surely because Google owns Motorola at least you get the very latest in software, no?

Uh, no.

Over the last week, I got Android 4.3 on my almost two-year-old Samsung Galaxy Nexus, and on my one-year-old Asus Nexus 7. Surely, the Moto X, being the very newest device made by Google's own subsidiary, launches with the latest Android software?

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
GOOG $575.33 0.00%
AAPL $126.41 0.00%
FB $81.21 0.00%
TSLA $200.63 0.00%
YHOO $44.16 0.00%

Markets

DOW 18,135.72 +38.82 0.21%
S&P 500 2,101.04 +2.51 0.12%
NASDAQ 4,982.8090 +15.6680 0.32%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs