Google to close American Motorola smartphone factory

Motorola logoA year ago, Google proudly announced that its new Moto X smartphone would be built in the US. It fitted out a factory near Fort Worth, TX and claimed that the facility would make for a "leaner, more efficient" operation. It looks like those efficiencies haven't materialized, with the Wall Street Journal reporting that the factory will be closed by the end of the year.

The $600 Moto X was aimed at American buyers. Motorola President Rick Osterloh told the Journal that the company had found the North American market "exceptionally tough," however. Mark Randall, Motorola's senior vice president for supply chain and operations, said that poor sales of the Moto X prevented the company from achieving economies of scale and that both labor and shipping costs in the US were higher than they would be overseas. At its height, the plant employed more than 3,800 people to build Moto X phones. Currently, that number is around 700.

Since the launch of the premium-priced Moto X, the company has switched to a new strategy of selling midrange phones at bargain prices, such as the new $129 Moto E and $179 Moto G.

These devices have found their greatest success in non-US markets, meaning that the Forth Worth plant's advantage—a shorter time between device configuration/assembly and getting it in the customer's hands—was no longer relevant.

Osterloh said that the decision to close the plant was independent of Google's decision to sell Motorola Mobility to Lenovo for $2.9 billion. That deal is expected to close later this year.

Source: Ars Technica

Tags: Google, Motorola

Add comment

Your name:
Sign in with:
Your comment:

Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party

Last news

Consumer group recommends iPhone 8 over anniversary model
LTE connections wherever you go and instant waking should come to regular PCs, too
That fiction is slowly becoming a reality
The Snapdragon 845 octa-core SoC includes the Snapdragon X20 LTE modem
Human moderators can help make YouTube a safer place for everyone
Google says Progressive Web Apps are the future of app-like webpages
All 2018 models to sport the 'notch'
The biggest exchange in South Korea, where the BTC/KRW pair is at $14,700 now
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /

News Archive



Do you use microSD card with your phone?
or leave your own version in comments (4)