This article was published on September 11, 2013

Moto X manufacturer says labor costs for producing in the US are 3 times higher than China


Moto X manufacturer says labor costs for producing in the US are 3 times higher than China

bluesteel-motoxMotorola’s contract manufacturer for the Moto X has revealed that the labor costs for the device’s Stateside production are three times as high as they would be in China, according to Reuters.

Flextronics operates the factory in Texas where the Moto X smartphone is being produced. According to CEO Mike McNamara, workers there are paid roughly $12 to $14 an hour, compared to an average wage of $4 an hour in China. The executive went on to point out that reduced shipping and logistics costs offset some of the extra wages.

The Moto X’s US origins have been one of Motorola’s key selling points for the device. Research firm IHS previously estimated a $12 cost for labor and assembly of the Moto X.

The report also suggests interest in the Moto X has been fairly mellow. Motorola CEO Dennis Woodside told Reuters that the facility is currently producing 100,000 Moto X units a week. That’s just a fraction of the volume that competing flagship smartphones from Samsung and Apple are seeing.

Motorola now shipping 100,000 Moto X phones weekly from Texas [Reuters]

Related: Motorola’s custom color tool for the Moto X is live. Here are 10 of our favorite combinations. and Hands-on with the Moto X: You won’t lust after it, but it’s a solid smartphone

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