U.S., Motorola Open First Domestic Smartphone Factory

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U.S., Motorola Open First Domestic Smartphone Factory

You would certainly be forgiven for the belief that it’s nearly impossible to produce a smartphone in the United States and still maintain a profit margin. Google Inc (NASDAQ:GOOG) is looking to both change that fact, and that perception. Google, who acquired Motorola Mobility Holdings Inc (NYSE:MMI), along with Motorola’s manufacturing partner Flextronics International Ltd. (NASDAQ:FLEX) showed that very plant off this morning to news outlets around the United States.

Motorola

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The Longview, TX plant was formerly owned by Nokia and production on Motorola’s flagship Moto X handset began in earnest last month.

Mike McNamara, CEO of Flextronics International Ltd. (NASDAQ:FLEX), a Singapore-based contract electronics manufacturer who employs 250 people in Longview, TX, said the plant now is custom-assembling 100,000 Moto X Android phones each week in the plant. It’s expected that the plant will provide 2,500 local jobs in the near future.

Business expansion

In a recent interview, McNamara added that he was impressed by the sheer speed that the plant has been able to ramp up assembly and added that the new space also provides an opportunity for future expansion should it be viewed necessary or wanted.

Texas Governor Rick Perry was on hand for today’s event and used the occasion to make it known that Texas creates jobs under his stewardship.

“Make no mistake: Flextronics International Ltd. (NASDAQ:FLEX) and Motorola Mobility Holdings Inc (NYSE:MMI) could have put this facility anywhere in the world, but they chose Texas,” he said in a prepared statement.

Asia-based factories still account for the production of the chips, displays, and batteries that go into the Moto X, and make up the lion’s share of the cost of production. Assembly is a small part of the phone’s cost, but the jobs are welcome nonetheless.

Motorola users in America

Offsetting the fact that the primary components will need to be shipped from Asia is the fact that Motorola Mobility Holdings Inc (NYSE:MMI) will be closer to the product’s end users in America. The Moto X allows for numerous customizable options to the phone and these should be turned around quicker given its domestic assembly.

Motorola Mobility Holdings Inc (NYSE:MMI) had called for the plant to create 2,000 new jobs but know believes that number will increase to 2,500 in the coming months.

Check out photos and a virtual tour here.

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While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. <i>To contact Brendan or give him an exclusive, please contact him at [email protected]</i>
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