Motorola to close only US smartphone factory

May 30, 2014 by Emily Schmall

Google's Motorola Mobility handset unit has announced it will close its Texas factory by the end of this year, barely a year after it opened as the first smartphone factory in the U.S.

Sales of its flagship phone, the Moto X, have been weak and the costs of running the plant are too high to keep operations going, Motorola Mobility spokesman Will Moss said. Singapore-based international contract electronics manufacturer Flextronics Ltd. operates the plant.

Even though the concept of the smartphone was pioneered in the U.S. and many phones have been designed here, the vast majority of phones are assembled in Asia.

The Texas factory has allowed Google to stamp the phone with "Made in the U.S.," although assembly is just the last step in the and accounts for relatively little of the cost of a smartphone. The cost largely lies in the chips, battery and display, most of which come from Asian factories.

The factory employs about 700 workers who assemble the Moto X smartphones for the U.S. market, Moss said. He declined to comment on whether Motorola would retain the workers.

Google bought cellphone pioneer Motorola Mobility for $12.4 billion in 2012. Originally retailing the Moto X for $600, amid flagging sales, Google dropped the price to $399. Still, only a fraction of the units were sold compared to the Apple iPhone.

Explore further: Flagship Motorola smartphone headed for Europe

5 /5 (2 votes)
add to favorites email to friend print save as pdf

Related Stories

Google coming out with two new Android phones

May 31, 2013

Google revealed Thursday that it has two new sophisticated Android smartphones in the works, one of which will have the unprecedented distinction of being made in the United States.

Recommended for you

EU Parliament votes to break up Google

Nov 27, 2014

The European Parliament voted overwhelmingly for the break-up of Google Thursday in a largely symbolic vote that nevertheless cast another blow in the four-year standoff between Brussels and the US Internet ...

Toyota finds new air bag issue, recalls more cars

Nov 27, 2014

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

Nov 26, 2014

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

Caliban
not rated yet May 31, 2014
America's new national pastime --The Race To The Bottom-- continues apace.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.