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?