updated 05:22 am EDT, Wed September 11, 2013
US Moto X employee cost three times higher than China equivalent
Production of the Moto X smartphone is operating at a brisk pace, with Motorola's contracted Texas-based factory churning out 100,000 devices each week. The high customized order numbers are still increasing, according to a report, with Google also taking the time to add the inside of the facility to its indoor Street View collection.
The factory, operated by Flextronics on behalf of Motorola, is capable of producing "tens of millions" of phones per year, said Motorola CEO Dennis Woodside in an interview with Reuters. While this is relatively low in comparison to production numbers from Apple and Samsung, Woodside revealed that the factory is capable of higher capacities of work. "When you set up to ramp a factory you need a plan, and we have the shipment targets we need to make with our carrier partners, and where we need to be right now is 100,000 units and that's where we are," advised Woodside.
It was not revealed what proportion of the produced devices were standard models or those customized by Moto Maker, something which will probably increase once other carriers than AT&T are able to offer the option, but Woodside did say that custom orders were "substantial."
The use of a US-based factory for orders comes with benefits and extra costs. Though it is able to construct a customized Moto X and get it to customers within four days with lower distribution costs than a device built abroad, Flextronics CEO Mike McNamara revealed that it was paying its workers around $12 to $14 per hour, a wage roughly three times higher than what would be paid to China-based employees performing a similar task. Despite the increased cost of business, Woodside claims that the devices are still being sold at a profit.
The new Street View tour in the Fort Worth factory, created to celebrate the launch of the facility according to Engadget. The tour, which circles the construction area via a balcony, shows some of the 2,000 employees working on building the Moto X. Motorola advises that it is still looking to increase the employee count.