Google’s Motorola Mobility Smartphone unit in Fort Worth Texas is being closed by end of this year. The unit which is barely a year old unit is being closed because of weak sales and high manufacturing costs. This particular factory employs about 700 workers who assemble the Moto X smart phones for American market. Now the fate of these 700 workers is unknown. Motorola’s spokes man Will Moss declined to comment on retaining the employs but he stated “sales of its flagship handset the Moto X were too weak and the costs of running the plant too high to keep operations going.”
Google’s attempt to build smart phones in USA has ended in finger counting days. Former Motorola’s chief Executive-Dennis Woodside had stated soon after the opening of the Unit that it would be very expensive to manufacture in the USA and a great challenge to sustain in U.S Market. And his statement has been proved right.
"Manufacturing or assembling Smartphone’s in the U.S. was always going to end in tears for Motorola," Strategy Analytics analyst Neil Mawston said. "The U.S. is well positioned to design smartphones, as Apple does successfully, but manufacturing them is a whole different ballgame."