08-10-2015 09:14 AM
45 12
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  1. stanleywinthrop's Avatar
    AppleCare is much better for most people since there's an actual physical location you can go to get service done.

    Posted via Android Central App (Moto X)
    But also twice as expensive.

    Posted via the Android Central App
    08-06-2015 08:58 AM
  2. jephanie's Avatar
    But also twice as expensive.

    Posted via the Android Central App
    Apple users are more than willing to pay twice the price for the convenience of physical site service. I'd bet a lot of other people would, too, if they were buying "premium" devices.
    08-06-2015 01:06 PM
  3. Jyscal's Avatar
    I'd like something akin to Applecare for Motorola, but wouldn't pay as much for it since we don't have the physical locations to conveniently swap stuff out for issues. Either that or do what HTC is doing and go with the first Oops replacement for free.
    08-06-2015 02:36 PM
  4. Ed Briggs's Avatar
    I laugh when people think these phones should cost near the cost of materials.

    Materials
    + hardware engineer salaries
    + software engineer salaries
    + firmware engineer salaries
    + licensing costs
    + marketing costs
    + keeping the lights on
    + making a profit for your investors

    ...

    Posted via Android Central App (Moto X)
    You forgot shipping, manufacturing and warehousing costs. A lot of people need to be paid before the phone reaches your grubby little hands.
    co.ag.2005 likes this.
    08-06-2015 02:39 PM
  5. KWKSLVR's Avatar
    Part of it is how Apple Care is marketed. It dumbfounds me. I have friends that wouldn't buy an extended warranty for anything citing that they are a waste but will shell out hard earned cash for that crap. If you NEED an extended warranty for a $2500 piece of hardware, then it's not worth the cost. But Apple caters to a customer base that feels good about paying too much for hardware (and that statement is purely in regards to their hardware costs and not any benefit one weighs on their software and ecosystem experience). Case in point, my mom had a $2800 MBP. It literally did nothing for 5 years other than act as a portal to Facebook and as a device to store pictures on. It died right after Apple Care would have expired had we purchased it for her. All the physical store did was charge $400 for a fix that lasted 3 months (without disclosing that the fix was temporary and would last 6 months at best).

    That's crap to me. I've never had a laptop NOT last at least that long with no issue (at least where the hardware was concerned) and I have done a lot more with my units than Facebook duty.

    I'm currently the owner of a slightly overpriced Alienware 17R2 (which was free to me). It's nice hardware. Regardless of all the ways "people" get up in arms over the brand, it's a solid computer and I have enjoyed it so far. Despite the main appeal to many being above average warranty availability, I won't shell out cash for one. If I bought an extended warranty for every laptop and smart phone I've ever owned, I'd be out thousands of dollars. I've never once thought, "Man, if I only had the extended warranty!" Even my Samsung TV needed a capacitor replaced AFTER the Best Buy warranty I could have bought would have expired. Statistically speaking, it just doesn't make sense. Companies offer extended warranties because it's profitable to do so. If it makes them money, you've lost money. We're talking about a sales model that results in 100% profit. Chew on that for a second. But, somehow, despite this FACT of business economics, otherwise smart people will shell out hundreds for a warranty on a Macbook that costs thousands, and then they feel good about it when they didn't need it as they buy the next one and do the same thing.

    To tie all that back into Motorola, bear in mind that the Moto X is not their big seller. Not by a long shot. I think direct sales and competitive pricing is about rebuilding the brand. I have enjoyed my 2014 MX. Because of my personal experience, I have steered other people into Moto G's/E's that would have just gone to AT&T or Verizon and picked whatever the free or $100 phone on a 2 year contract was at that time. Part of building a brand is getting product into people's hands. The reality is that direct sales alone is not necessarily the best way to do that. How many people buy an iPhone directly from Apple compared to going to their carrier store? I would guess that not many do. If you take a new Moto X, an S6, an LG G4 and a HTC One M9 and line them all up in a row inside AT&T and price them all relatively the same with a 2 year contract, we know that the Moto X will be the device with the lowest sales. What's the benefit to Motorola to deal with the hassle of providing different carrier versions when those carriers aren't even going to steer customers to their product through advertising or in stores? Motorola has the Droid line for that with Verizon (and why would Verizon push a different Motorola device).

    I kind of think it's about less headache for Motorola and about trying a new sales model. They will sell just as many units to repeat MX users as they would with carrier models, only the consumer pays less and they can spend less time and manpower dealing with 1 device than 3 or 4 and they probably increase profit margins per device sold. The no contract deal is getting bigger and bigger. My own Grandmother didn't want a contract. She didn't care about being on the hook for 2 years as much as just wanting to be able to save some money and have the freedom to try a different carrier if things don't work out after making a move from a dumbphone on AT&T to a smartphone on Straight Talk.
    somdave2005 and jephanie like this.
    08-06-2015 02:44 PM
  6. Ry's Avatar
    Apple users are more than willing to pay twice the price for the convenience of physical site service. I'd bet a lot of other people would, too, if they were buying "premium" devices.
    I'd be willing to spend the same amount of money to Motorola if they had a physical location I could go to get a repair done on my device.
    jephanie and co.ag.2005 like this.
    08-06-2015 03:18 PM
  7. Ry's Avatar
    You forgot shipping, manufacturing and warehousing costs. A lot of people need to be paid before the phone reaches your grubby little hands.
    Exactly.

    If you want the phone for the cost of the materials, build it yourself.
    co.ag.2005 likes this.
    08-06-2015 03:19 PM
  8. jephanie's Avatar
    I was actually thinking about the warranty thing, too, in that the low price of the XPE (or whatever we'll be referring to it in shorthand), makes warranties a waste of money. If something catastrophic happens, I'm going to be much more able to replace it down the road at that price and not feel guilty at having spent nearly that same amount on a warranty program that, at best, would ship me a "certified like new" replacement that wouldn't have my personal customization applied to it.

    So not only does this model have disruptive capability with the carriers from a contractual standpoint, it also impacts their ability to sell their stupid warranties.
    KWKSLVR likes this.
    08-06-2015 03:33 PM
  9. girl_Interrupted513's Avatar
    I was actually thinking about the warranty thing, too, in that the low price of the XPE (or whatever we'll be referring to it in shorthand), makes warranties a waste of money. If something catastrophic happens, I'm going to be much more able to replace it down the road at that price and not feel guilty at having spent nearly that same amount on a warranty program that, at best, would ship me a "certified like new" replacement that wouldn't have my personal customization applied to it.

    So not only does this model have disruptive capability with the carriers from a contractual standpoint, it also impacts their ability to sell their stupid warranties.
    Good job, XPE it should be.

    Posted via the Android Central App
    08-06-2015 08:26 PM
  10. Raptor007's Avatar
    AppleCare is much better for most people since there's an actual physical location you can go to get service done.

    Posted via Android Central App (Moto X)
    Not everyone has an Apple store near them and most don't unless you want to drive a couple hours. Its not always perfect or ideal but Moto has taken the step forward to offer a good warranty plan. Plus the other features I suggested do offer value beyond a local store where every phone looks the same and everyone gets the same phone.
    08-07-2015 02:46 PM
  11. Ry's Avatar
    Not everyone has an Apple store near them and most don't unless you want to drive a couple hours. Its not always perfect or ideal but Moto has taken the step forward to offer a good warranty plan. Plus the other features I suggested do offer value beyond a local store where every phone looks the same and everyone gets the same phone.
    But no one has a Motorola store near them.
    08-07-2015 05:12 PM
  12. Premium1's Avatar
    OK so not to look a gift horse in the mouth here haha, but why is this phone only going to be $399? I assume that's the smallest model, so even assuming the 64gb at $499 perhaps... Why is it so cheap? It seems like it's pretty much top of the line otherwise... I've gone from Note 3 to Note 4 and would go Note 5 but I'm sick of Samsung software issues (and have no interest in rooting), and aside from the processor (which is still one of the best out) and 1GB of RAM less, the Moto X Style is looking like a great alternative... So is there something else about this phone that's much lesser than the Note 5 that makes it so much cheaper?

    Just curious.
    Because they are selling it without contract/subsidies. These are prices phones should be. No reason to need to spend $600+ for a top of the line phone anymore.
    08-07-2015 10:13 PM
  13. getbretweir's Avatar
    Because they are selling it without contract/subsidies. These are prices phones should be. No reason to need to spend $600+ for a top of the line phone anymore.
    between Moto and today with Verizon, it's been quite the week for Android fans here in the US. I'm sure Moto was well aware of this prior to announcing their new distribution strategy for the Pure. it'll be interesting to see if other OEMs, specifically HTC with M10, take the same route. I sure hope so

    Posted via the Android Central App
    08-07-2015 11:10 PM
  14. droidguy1964's Avatar
    OK so not to look a gift horse in the mouth here haha, but why is this phone only going to be $399? I assume that's the smallest model, so even assuming the 64gb at $499 perhaps... Why is it so cheap? It seems like it's pretty much top of the line otherwise... I've gone from Note 3 to Note 4 and would go Note 5 but I'm sick of Samsung software issues (and have no interest in rooting), and aside from the processor (which is still one of the best out) and 1GB of RAM less, the Moto X Style is looking like a great alternative... So is there something else about this phone that's much lesser than the Note 5 that makes it so much cheaper?

    Just curious.
    Because the nexus 6 flubbed at 699. Moto doesn't want a repeat.

    Posted via the Android Central App
    08-08-2015 04:39 PM
  15. Ry's Avatar
    Because the nexus 6 flubbed at 699. Moto doesn't want a repeat.

    Posted via the Android Central App
    Google probably has more influence on the price of their Nexus line.

    Posted via Android Central App (Moto X)
    08-08-2015 06:23 PM
  16. cdubb1's Avatar
    Selling direct to consumer, not advertising much, and not being OVERpriced is how they're doing it.
    08-09-2015 11:49 AM
  17. getbretweir's Avatar
    Selling direct to consumer, not advertising much, and not being OVERpriced is how they're doing it.
    I'd disagree with the advertising part ... granted they don't have the marketing budget as an Apple or Samsung, but proportionately they're definitely pumping a ton of money into it ... they can thank Lenovo for that!

    As stated, the direct-to-consumer distribution strategy is the reason they can afford to offer such a premium device for a more reasonable price. I imagine this trend will only continue to gain traction and other OEMs will follow suit.
    08-09-2015 12:28 PM
  18. jephanie's Avatar
    As stated, the direct-to-consumer distribution strategy is the reason they can afford to offer such a premium device for a more reasonable price. I imagine this trend will only continue to gain traction and other OEMs will follow suit.
    I explained on another post or thread somewhere around here that they are basically selling direct-to-consumer at wholesale pricing. So on a per-unit basis, they are still making the same (or slightly higher) profit as they would if selling through carriers at retail prices. It's just that we, as consumers who prefer or, with Verizon's impending plan policies, need to buy outright benefit with the lower out-of-pocket cost.

    The XPE is arriving at just the perfect time.
    08-09-2015 04:20 PM
  19. getbretweir's Avatar
    I explained on another post or thread somewhere around her that they are basically selling direct-to-consumer at wholesale pricing. So on a per-unit basis, they are still making the same (or slightly higher) profit as they would if selling through carriers at retail prices. It's just that we, as consumers who prefer or, with Verizon's impending plan policies, need to buy outright benefit with the lower out-of-pocket cost.

    The XPE is arriving at just the perfect time.
    yeah I read your other post, thank you. it'll be interesting to see if other companies, specifically HTC, follow suit.
    jephanie likes this.
    08-09-2015 05:03 PM
  20. LinuxWeather's Avatar
    Branding has a cost. You pay $11.99 for 30 Advil yet $7.99 for 100 ibuprofen. They're the same thing, its just Advil has a sleek coating, brand loyalty, and is for those consumers whom don't want to read or compare and just want to run it, pick it up, and run out.

    Also all the other issue brought up, but at the end who cares what others pay, if they want to spend more for Advil or Apple instead of CVS brand or Motorola let them, jokes on them ;-)

    Posted via the Android Central App
    jephanie likes this.
    08-10-2015 09:14 AM
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