According to The Wall Street Journal, the cost of the Moto G is around $123. The Moto G is a more affordable version of the Moto X with a $179 price tag for the 8GB version and $199 for the 16GB version. These are prices without a contract though! The $123 manufacturing price is likely based on the sum of the average component cost that goes into the phone, including marketing, research, development, etc. This pegs Motorola’s margins at about 5%, which is low compared to profit margins generated by Samsung and Apple products. Samsung and Apple have been powerhouses in the smartphone market for a long time now, but Motorola is stepping up the competition with new designs and high-powered devices.