Motorola closing US Factory that made Moto X

jpiniero

Lifer
Oct 1, 2010
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http://www.theregister.co.uk/2014/05/30/motorola_to_close_texas_factory/

Motorola Mobility's adventure in stateside manufacturing is coming to an end, with the Google subsidiary announcing that it plans to close its Fort Worth, Texas factory less than a year after launching its vaunted Moto X smartphone.


Have to say it did seem like more of a PR move as opposed to a business one. That never works, and with the Moto X being such a flop it makes a convenient excuse to close the plant and not look back.
 

cronos

Diamond Member
Nov 7, 2001
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Sadly, there's a reason why they chose to do this as a PR move, because people bought it (both literally and figuratively speaking).

That 'made in USA' bit worked as far as it could and now they don't need it anymore, so they are shipping it out.
 

jpeyton

Moderator in SFF, Notebooks, Pre-Built/Barebones
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Aug 23, 2003
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Moto's strategy is to let Samsung/Apple/others duke it out in the high-end, while they capture the next billion smartphone users on the low end. They want to be what Nokia was internationally 10 years ago.

The Moto G and Moto E are brilliant phones. We're getting close to the point where a sub-$50 handset can competently run Android. https://www.youtube.com/watch?v=3P9vDAY0U0A
 

Ravynmagi

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Jun 16, 2007
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I think it's mostly because Lenovo bought Motorola. It was good PR for Google and Motorola being American companies and assembling the phone in America. But now that it's own (or to be owned) by a Chinese company, obviously Lenovo isn't going to worry about that sort of thing.

PS. I wouldn't call the Moto X a flop. It wasn't a success. But it seems like it did alright.
 

s44

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Oct 13, 2006
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PS. I wouldn't call the Moto X a flop. It wasn't a success. But it seems like it did alright.
The X got lots of mind share (at least among the tech-aware), but not much commercial success. The launch was a disaster... Moto maker was AT&T exclusive, non-US countries got nothing, and the price was laughable.

But Lenovo was buying the mindshare and brand recognition, so it works out.

Moto's strategy is to let Samsung/Apple/others duke it out in the high-end, while they capture the next billion smartphone users on the low end.
Well, no. Moto doesn't have a strategy. They're part of Lenovo's strategy now, plugging the gap in US/Euro-friendly mobile branding.

http://www.techradar.com/news/phone...plan-to-become-king-of-the-smartphone-1251060
 
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BladeVenom

Lifer
Jun 2, 2005
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So is anyone going to buy the plant? The cost of labor was a very small percentage of the cost of the phone.
 

destrekor

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Nov 18, 2005
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It was a PR move, but it also could have worked just fine had the phone been a bigger success in the U.S.. They didn't export any American-assembled Moto X's elsewhere, it was strictly a plant for sales within the USA.

Sadly, this seems like an ill-planned move. Moto may have a brand history, but it's a fairly pathetic history, filled with terrific hardware but abysmal sales outside of the major carrier-exclusive products, mostly Verizon's Droid line - and because of that, terrible brand recognition. They are known for quality and sturdy products with antenna/radios that typically outperform the competition, but it takes more than that.

I thoroughly expect a second and third Moto X to really rock out in sales, so long as they do the marketing right and have the important bits solid and ready for launch (like the actual product assembly and ordering system - it's still been lackluster under load).

The Moto X is a fantastic device - but this was really the first time Motorola ventured out with their own brand approach, and they weren't prepared and didn't sell up the strengths as well as they ought to have.

I think they'll make bank on the low and mid-end markets, but they need to really establish a brand wrapped around the flagship X series, and hopefully the next X has the internal guts to not scare away those who worship specs. I was extremely hesitant and it took awhile to convince me, notably a sale and frustration finally boiling over with my VZW Galaxy Nexus.

I think they may need to really establish a Moto X and Moto XL deviation, as perhaps half of the fail in sales has been an issue with some people wanting to focus on the phablet-size phones. I can't stand requiring two-handed operation - I can and do use two hands with my Moto X, but it's perfectly at peace with one-handed operation.

I'm still pissed that Google offloaded them the way they did. Not that they sold them, that was something I figured they'd do in the long run - but to a Chinese conglomerate, after all these years as an independent American corporation? More than anything, that's just a nasty slap in the face. Now the entire market is essentially an Asian market, especially as it concerns the American dollar: Nokia and Sony Ericsson just don't sell strongly in the American markets, though there may be an upward trend to be had as they expand and change their business strategies a little. Granted, Sony Ericsson (or Sony Mobile, I think) is basically Japanese-owned, though really a Swedish brand.

Hopefully Lenovo does us right and keeps the American nature of Motorola, instead of entirely incorporating their brand and product into the conglomerate and ultimately exerting full control over brand direction and product portfolio.


Ultimately, I think Motorola just needed another generation of product to see enough revenue to sustain the American plant.
 
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lothar

Diamond Member
Jan 5, 2000
6,674
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It was a PR move, but it also could have worked just fine had the phone been a bigger success in the U.S.. They didn't export any American-assembled Moto X's elsewhere, it was strictly a plant for sales within the USA.

Sadly, this seems like an ill-planned move. Moto may have a brand history, but it's a fairly pathetic history, filled with terrific hardware but abysmal sales outside of the major carrier-exclusive products, mostly Verizon's Droid line - and because of that, terrible brand recognition. They are known for quality and sturdy products with antenna/radios that typically outperform the competition, but it takes more than that.

I thoroughly expect a second and third Moto X to really rock out in sales, so long as they do the marketing right and have the important bits solid and ready for launch (like the actual product assembly and ordering system - it's still been lackluster under load).

The Moto X is a fantastic device - but this was really the first time Motorola ventured out with their own brand approach, and they weren't prepared and didn't sell up the strengths as well as they ought to have.

I think they'll make bank on the low and mid-end markets, but they need to really establish a brand wrapped around the flagship X series, and hopefully the next X has the internal guts to not scare away those who worship specs. I was extremely hesitant and it took awhile to convince me, notably a sale and frustration finally boiling over with my VZW Galaxy Nexus.

I think they may need to really establish a Moto X and Moto XL deviation, as perhaps half of the fail in sales has been an issue with some people wanting to focus on the phablet-size phones. I can't stand requiring two-handed operation - I can and do use two hands with my Moto X, but it's perfectly at peace with one-handed operation.

I'm still pissed that Google offloaded them the way they did. Not that they sold them, that was something I figured they'd do in the long run - but to a Chinese conglomerate, after all these years as an independent American corporation? More than anything, that's just a nasty slap in the face. Now the entire market is essentially an Asian market, especially as it concerns the American dollar: Nokia and Sony Ericsson just don't sell strongly in the American markets, though there may be an upward trend to be had as they expand and change their business strategies a little. Granted, Sony Ericsson (or Sony Mobile, I think) is basically Japanese-owned, though really a Swedish brand.

Hopefully Lenovo does us right and keeps the American nature of Motorola, instead of entirely incorporating their brand and product into the conglomerate and ultimately exerting full control over brand direction and product portfolio.


Ultimately, I think Motorola just needed another generation of product to see enough revenue to sustain the American plant.
Pray tell how else should Google have unloaded Motorola, and to whom?
 

destrekor

Lifer
Nov 18, 2005
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Interesting that they are using people to build their phones and not robots.
That strikes me as odd.

Everyone is using humans to assemble phones and most consumer electronics.

Remember all the scandals with Foxconn? Most companies just outsource the assembly and production of most of their devices to various ODMs and contract manufacturers.

It seems we are at a point where robotic technology can help improve efficiency throughout the electronic device manufacturing process, but putting all, or at least most, of the pieces together in final form is still a hands-on job. I cannot imagine we'll be at this stage for much longer, as assembly cannot be that out of reach of advanced robotics.
 

destrekor

Lifer
Nov 18, 2005
28,799
359
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Pray tell how else should Google have unloaded Motorola, and to whom?

Hell if I know :p

I'm just bummed that yet another of the last few American greats no longer has American ownership, and further, is all-but abandoning American employment. I don't expect much of Motorola's US presence to remain operational for a lengthy period of time, not with a business like Lenovo involved.
 

khha4113

Member
Feb 1, 2001
139
0
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Everyone is using humans to assemble phones and most consumer electronics.

Remember all the scandals with Foxconn? Most companies just outsource the assembly and production of most of their devices to various ODMs and contract manufacturers.

It seems we are at a point where robotic technology can help improve efficiency throughout the electronic device manufacturing process, but putting all, or at least most, of the pieces together in final form is still a hands-on job. I cannot imagine we'll be at this stage for much longer, as assembly cannot be that out of reach of advanced robotics.

We could have. I used to work on project of automated manufactured products that was more complex than this, but our company's management decided that that it would be too costly compared to moving production to Mexico and China, and as result the project was scrapped. Now, as the cost of oversea production is not cheap as 10 years ago, our management wants to revive the project again!
 

lothar

Diamond Member
Jan 5, 2000
6,674
7
76
Everyone is using humans to assemble phones and most consumer electronics.

Remember all the scandals with Foxconn? Most companies just outsource the assembly and production of most of their devices to various ODMs and contract manufacturers.

It seems we are at a point where robotic technology can help improve efficiency throughout the electronic device manufacturing process, but putting all, or at least most, of the pieces together in final form is still a hands-on job. I cannot imagine we'll be at this stage for much longer, as assembly cannot be that out of reach of advanced robotics.
Robots don't complain.
Robots don't demand higher wages.
Robots don't kill themselves.

2 years ago, Foxconn only had 10,000 robots. They should have almost a million now.
 

lothar

Diamond Member
Jan 5, 2000
6,674
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A spinoff, so it could be it's own company.
Hard to see them surviving as a spinoff company given the fact they lose about $300-400 million every quarter.
They only managed to survive this long because Google was absorbing those losses on it's own balance sheet.
 
Feb 19, 2001
20,155
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Robots don't complain.
Robots don't demand higher wages.
Robots don't kill themselves.

2 years ago, Foxconn only had 10,000 robots. They should have almost a million now.
Are SMT lines considered robots? Not sure exactly what we're calling robots here.