Motorola To Shut Down Moto X Texas Factory By The End Of 2014

Motorola To Shut Down Moto X Texas Factory By The End Of 2014(Ping! Zine Web Tech Magazine) – Motorola has announced that it will be closing down its Fort Worth, Texas, factory at the end of the year, as sales and profits continue to plummet.

The factory, which assembles Motorola’s high-end device, the Moto X, opened last May in the U.S. as a way to quickly manufacture the smartphone for U.S. consumers, reports the Wall Street Journal.

According to researchers at Strategy Analytics, the Moto X only sold 900,000 devices globally in the first quarter of its release.  In comparison, Apple sold 26 million iPhone 5S’s in the same fiscal period.

“Manufacturing or assembling smartphones in the U.S. was always going to end in tears for Motorola,” said Strategy Analytics Neil Mawston. “The U.S. is well positioned to design smartphones, as Apple does successfully, but manufacturing them is a whole different ballgame.”

The factory closure’s announcement comes months after Google announced that it had sold Motorola to Lenovo Group for $2.9 billion, though Motorola Presidnet Rick Osterloh said the closure had nothing to do with the purchase.

Motorola will continue manufacturing the Moto X in its Brazil and China factories.