Motorola’s New Texas Plant Will Build The First Ever Cell Phones In the USA

Cellphone pioneer and Google acquisition, Motorola, announced Wednesday that it’s opening a Texas manufacturing facility that will create 2,000 jobs and produce its new flagship device, Moto X.

These will be the first smartphones ever assembled in the U.S.

It’s no secret that the loss of manufacturing jobs in the United States, through increased outsourcing, plays a major role in the stagnant employment rate and the economy’s slow/stagnant “recovery”.

Texas Gov. Rick Perry took the opportunity to take some credit and share just how wonderful he and the state is: “Our strong, healthy economy, built on a foundation of low taxes, smart regulation, fair legal system and a skilled workforce is attracting companies from across the country and around the world that want to be a part of the rising Texas success story.”

The factory will be owned and run by Flextronics International Ltd., a Singapore-based contract electronics manufacturer that has had a long relationship with Motorola.

If you’re interested in the economics of acquiring parts, assembling and distributing cell phones …  assembly 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.  According to the research firm iSuppli, the components of Samsung’s latest flagship phone, the Galaxy S4, cost $229, while the assembly costs just $8.

“Fact remains that more than 130 million people in the U.S. are using smartphones,” Mark Randall, Motorola’s senior vice president of supply chain and Operations, said in a statement, “but until Moto X, none of those smartphones have been built in the USA.”


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