Google Ships 100,000 Moto X Units Every Week (GOOG)
Moto X, the flagship device from Google subsidiary Motorola, is the most customizable smartphone on the market. Customers can choose from a wide variety of color combinations and order the device directly from Google.
In order to customize the device, Google chose to assemble the Moto X domestically. According to Reuters, this has resulted in jobs that pay $12 to $14 an hour in America. Comparatively, the typical Chinese worker receives only $4 an hour.
In an interview with Reuters, Flextronics CEO Mike McNamara justified Google's decision to assemble domestically by noting the cost savings.
"You have to offset it with what's the time-to-market savings and what's the fact that you drive your truck down the street to drop it off," he told the publication. "You got to add up all these things."
From the beginning, Google seemed like it was willing to spend whatever it may take to turn Moto X into the next big smartphone. The search engine giant is rumored to spend as much as $500 million to promote the device.
By assembling the Moto X locally, Google can customize the design and ship the product to consumers much faster than if it were assembled in China.
In its review of the Motorola handset, Engadget's Joseph Volpe said that as soon as the wood-backed prototypes pass testing and are available to customers, "I'm confident the Moto X'll become the 'it' phone to have."
Not everyone agrees with that assessment.
That may be why Google is starting out small. According to the Reuters report, Flextronics is capable of producing tens of millions of phones a year. The manufacturing company will only produce more units if consumers demand them.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
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