The Verge has a great behind-the-scenes look at Motorola’s Moto X factory in Texas that is currently pumping out around 100,000 units of the new flagship device per week. We reported this morning that Motorola is currently shipping a disappointing 100k units a week, so it’s not that surprising to learn that around 200,000 square feet of the factory is not being used.
To accomplish this, Motorola partnered with Flextronics to refab a factory in Texas formerly used by Nokia. In a mere six months, the factory was completely updated and transformed to Motorola’s specifications, which including the hiring of 2,500 workers to make it run. Motorola did not actually make a final call to do manufacturing in the US until late 2012, but the factory was operational by August 6th of this year. The factory currently puts out about 100,000 devices per week, but Motorola says that it’s possible to scale it to tens of millions of units. Given that more than half of the over 400,000 square foot factory floor sits unused right now, that’s not too hard to believe.
It also spoke with Motorola CEO Dennis Woodside about why bringing assembly to the US was crucial for the Moto X’s MotoMaker customizations features.
“There is a premium [with building in the US] but it’s not material to the economics of the business. It’s a myth that you can’t bring manufacturing here because it’s too expensive,” says Woodside. “We’ve observed that wages in Asia are going up, wages here are relatively steady, consumers care more about where their products are being built, and you have advantages of having design close to your manufacture. Those advantages will well outweigh the costs that we have today and those costs will go down over time.”
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