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Motorola to close its Moto X plant in Texas by the end of the year
Motorola became part of a growing trend when it opened a plant in Texas to build its flagship Moto X, but just a year on, its now decided to shut down its US manufacturing operations. According to The Wall Street Journal, employee numbers have plummeted from nearly 4,000 when it was in full swing to only 700, and the plan is to close the factory by the end of the year. Motorola's intention was to offset the inherently higher cost of manufacturing in the US, compared with places like China, by being able to get handsets to customers quicker, and manage the Moto Maker customization process on home turf. But, despite churning out 100,000 Moto Xs a week at one point and progressively making the handset cheaper, the 'born in the USA' vision hasn't paid dividends.
See how the Moto X is made (video)
Not everyone gets to walk behind the tech industry's velvet ropes. So when Motorola opened the gates to its Fort Worth, Texas facility -- the place where custom Moto X's are made -- we were there to bring you an inside look. And in the interest of getting you even more intimately acquainted with the Google company's assembled in the USA smartphone production hub, we have something almost as good as being there: a behind-the-scenes video tour. So, what are you waiting for... an invite? Head past the break to glimpse phase one of this whole new Motorola and see Governor Rick Perry spike an iPhone 5.
Motorola's American Dream: unbridled customization, two-day shipping and a Texas factory
It wasn't supposed to happen this way: Motorola had picked the date for its Fort Worth, Texas facility's dedication ceremony first. But then Apple went ahead to claim the date and stole the day's spotlight with its new iPhone reveals. No matter, as the gathering of press, factory workers and bold-faced names -- Google Chairman Eric Schmidt and Texas Gov. Rick Perry -- seemed minorly preoccupied with the major news of the day. We were in the midst of Nokia's old manufacturing plant, after all, now the birthplace of all custom-made Moto X's and there was the spirit of American manufacturing to celebrate. To drive that point home, some very Springsteen-ish tunes were pumped over the loudspeakers as we all patiently awaited the end of Cupertino's product showcase and the start of Motorola's "we can too make it in the USA" toldja moment. I even half-expected Miley Cyrus to jump onstage with an assortment of teddy bears brandishing raver-hued Moto X's. She didn't and an Americana Twitter-trending hashtag moment was missed. Still there was one exceptional and unscripted highlight waiting in the wings. It wasn't CEO Dennis Woodside nose-thumbing at those unnamed rivals that said US-based production could and would never happen. Nor was it Schmidt's patriotic pledge to the Texas facility: "This is a bet we're taking on America ... on Texas [and] on this incredible workforce that's assembled here. We think this is a very, very safe bet." No. It was the moment Woodside presented Gov. Perry with a Moto X -- designed with Texan colors -- and Perry, in response, unceremoniously spiked his iPhone to the floor below. Yes, the moment is caught on tape.
Motorola's US factory now shipping 100,000 Moto X phones a week
If you're anything like us, you're wondering just how well Motorola's Fort Worth factory is coping with demand for Moto X smartphones. The answer? Well enough, thank you: CEO Dennis Woodside just told Reuters in an interview that the US-based plant is shipping about 100,000 Moto X units each week. While that's nowhere near the millions of units that Apple or Samsung would ship in a similar space of time, Woodside notes that the factory is still ramping up. Current numbers also don't reflect sales, since only some devices already have buyers. We'd add that Motorola is targeting just a handful of countries versus the global scale of its rivals. It's doubtful that the company's Fort Worth production will ever come close to that of manufacturing hubs like Shenzhen, but there's early signs that the American factory is here to stay.
Visualized: Inside the Moto X factory
This is where the Moto X magic happens: a 455,000 square-foot factory in Fort Worth, Texas that formerly manufactured devices for Nokia. From start to finish, these human-manned assembly banks are where your Moto X Moto Maker creations are born, assembled, tested for quality and then shipped off. We'll have more to come from our big Texas excursion, but for now feast your eyes on this bit of mobile Americana.
Motorola's next flagship phone is called Moto X, will be built in former Nokia plant in Texas
Outside of possible FCC filings, Motorola has largely been coy about just what its next major smartphone will be -- until now. The firm's Dennis Woodside just revealed at D11 that the new flagship will be called Moto X (previously rumored as the X Phone), and that it will be built in a Fort Worth, Texas factory that was once used to make Nokia phones. Woodside isn't giving away many details at this stage, although he teases that the smartphone will "know what you want to do before you do." Oh, and he has a Moto X in his pocket... not that he's about to show us anything just yet, of course. If you're curious about Woodside's actual quote, it's below: "It'll be the first Motorola smartphone built in the United States. It'll be built in Texas -- we'll employ around 2,000 people. It's right outside of Fort Worth in a 500,000 square foot facility that was previously used to build Nokia phones." Update: Woodside had two extra nuggets while on stage -- he mentioned that the Moto X will be "broadly distributed" across numerous carriers, a rarity for Motorola smartphones in recent years. Specifically, he noted: "The Moto X is going to be broadly distributed -- that's a first for Motorola in a number of years. The support of the carriers has been fantastic." In other words, this won't be a Nexus device, and you can count on some amount of skinning and bloatware to muddle things up. On the issue of battery life, Woodside said: "I'll save the details for later, but [the industry issue of] battery life is a huge problem. Motorola has some of the world's best engineers and systems designers who spend their lives on that problem. There are two processors in the device that creates a system that allows you to do such a thing." Two processors, you say? Fascinating! Update 2: The Moto X should arrive in late summer. Also, a reminder: Motorola mentioned a shift toward stock Android coming later this year. While there isn't any guarantee that the Moto X will embrace that philosophy, it would be a fitting poster child.
Crank up Springsteen: Apple assembling some of its new iMacs in the USA
Having moved its manufacturing to China across the past decade, the recent discovery that at least some of Apple's new, ultrathin iMacs are being assembled in the USA is an interesting one. Reports from TechCrunch and 9to5Mac source the discovery to the standard FCC / serial code / point of origin stamp found on the new iMacs, just below the stand (the two models we have, a 21-inch and a 27-inch, were both assembled in China). The stamp uses the same hyper-specific verbiage that Apple uses on its other products, noting that the new iMac is "Designed in California," and "assembled" in the USA -- "assembled" meaning that the device still sources some foreign-made parts during assembly. The US Federal Trade Commission requires products carrying an "Assembled in USA" moniker to be "substantially transformed" by the manufacturing process, and can only employ a percentage of foreign materials to the creation of said product. In so many words, many more criteria than geographic location determines the validity of an "Assembled in USA" claim. The Google Nexus Q touted the same point of origin for design and manufacturing, endearing good will on Google in the company's largest market. It's unclear if Apple's reviving its Elk Grove, CA. manufacturing plant, or working with a third-party, or a whole variety of other options, though reports of a hiring increase at the Elk Grove location are not tied directly to manufacturing gigs. We've reached out to Apple for more info on the change. Now, if you'll excuse us, we'll be listening to a ton of Bruce Springsteen.
iFixit tears down the Nexus Q: made in the USA, and possibly somewhere else
Is it possible to manufacture a sophisticated wireless-capable device entirely in the United States? That's vaguely the suggestion of Google's jet-black orb, launched last week at the search (and now hardware) giant's I/O event in San Francisco. Now, the Nexus Q is just dying to get undressed, and that's exactly what our iFixit friends have done, revealing each component's country of origin. Perhaps one of the most notable items, the Samsung 16GB moviNAND Flash Memory module, may have been made stateside (Austin, TX), but could also have been produced in Hwaseong, South Korea. Some parts, such as the Ethernet port (China) or optical-out connector (Japan) could only have been imported, as iFixit points out, though others are certainly domestic (a photomicrosensor made in California or Illinois). Ready to dive in yourself to verify those findings? You're not going to want to open this thing up on your own -- there's a bevy of capacitors inside, including one with output in the 400-volt range (a warning label alerts would-be trespassers). You can, however, poke around a bit more at our source link below.
Made in America: could your next phone be homegrown?
"Made in America." For some reason, my parents -- and the parents of many of my peers -- take great pride in seeing that phrase. I've seen people buy inferior products just because the label on the back proclaimed that it was thrown together in one of our 50 great states instead of across some imaginary line in "another country." Part of me wonders if people actually check to see if said claims are legitimate. As a business graduate, I fully understand the importance of producing goods within one's borders. There's a delicate balance that needs to be struck between imports and exports, and a huge part of a nation's economic growth hinges on how well that balance is executed. I suspect the generation before mine remembers a very different America than the one I've grown up in -- one where smokestacks outnumbered high-rise buildings, and one where jobs requiring steel-toe shoes were more lauded than those requiring a fancy degree and "knowing the right guy." Manufacturing was the backbone of America through some really, really trying times, and there's some sense of national pride that comes along with images of swinging hammers and climbing ladders. "We built this country," as they say.
