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Foxconn rumored to be looking at U.S. production facilities for smartphones

Posted: , by Alan F.

Foxconn rumored to be looking at U.S. production facilities for smartphones
While the Motorola Moto X isn't exactly selling like hotcakes, Motorola did seem to strike a nationalistic nerve  (hey, we scored an "A" in alliteration back in school) when it decided that it would produce the phone at a factory in Texas. The Moto X is the first smartphone built in the U.S., but it doesn't look like it wil be the last. Last week, a published report said that Foxconn is looking to open a factory in the states.

While Foxconn workers assemble a number of different smartphone brands and tablets, it is known mostly for its assembly of the Apple iPhone. Although the Taiwan based contract manufacturer would seem to be well suited to take advantage of the low wages in China, wages in Asia are on the rise and the workforce is not as highly skilled as in the U.S. As for the difference in wages, Foxconn will make up some of the extra cost by using automated production equipment. In addition, only high-end models would be produced in the U.S. with other models confined to production in China.

According to the report, Foxconn is looking to open a pair of factories in the U.S. with one on the East Coast and the other on the West Coast. Foxconn founder and chairman Terry Gou recently met with Arizona Governor Janice Brewer to discuss opening a Foxconn facility in that state. Gou says that the West Coast of the U.S. is too focused on software developers and needs some hardware designers in the area to balance things out.

source: cnYes.com (1), (2) (translated) via UnwiredView

15 Comments
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posted on 24 Nov 2013, 17:06 5

1. Sniggly (Posts: 7182; Member since: 05 Dec 2009)


Yeah, as soon as I saw this I figured that Apple came to them and said "we need to build phones in the US before people start catching on to the Moto X!!!"

posted on 24 Nov 2013, 18:49 2

4. Mxyzptlk (Posts: 4167; Member since: 21 Apr 2012)


Except you know people aren't catching on to the Moto X otherwise there wouldn't be a link to a separate article in this article.

posted on 24 Nov 2013, 21:26 1

8. darkkjedii (Posts: 12643; Member since: 05 Feb 2011)


That phones not even selling
http://m.intomobile.com/2013/11/13/moto-x-disappointment-only-500000-devices-sold/?maneref=https%3A%2F%2Fwww.google.com%2F

posted on 24 Nov 2013, 21:38

9. Mxyzptlk (Posts: 4167; Member since: 21 Apr 2012)


They charge $199 for a phone with specs that don't match the price. Sales are going to be very low. I suspect we'll soon here about the Texas plant closing really soon.

posted on 25 Nov 2013, 01:44 1

11. Sniggly (Posts: 7182; Member since: 05 Dec 2009)


*ahem* They don't charge $199 for the phone anymore, haven't for a couple of weeks at least. Prices have even gone down to 50 bucks or free depending on upgrades/new lines.

And while I can't say that I've seen it flying off shelves, the first one I ever sold was the only one that has ever been returned.

So no, I don't think that the Texas plant will close. I think indeed that this phone will sell better as time goes on.

posted on 25 Nov 2013, 07:34

13. Mxyzptlk (Posts: 4167; Member since: 21 Apr 2012)


You're missing the point Sniggly. They did charge $200 for it. Who would pay full price for a phone with last year specs? The prices dropping so low within. 6 months should be proof enough how Moto dropped the ball.

Selling one or two a month isn't impressive. If anything that just shows you how Motorola's game plan is far off .

Not with stiff competition it won't.

posted on 25 Nov 2013, 11:39

14. downphoenix (Posts: 2416; Member since: 19 Jun 2010)


"Who would pay full price for a phone with last year specs?" Iphone buyers don't seem to mind this much :)

posted on 25 Nov 2013, 13:34

15. javac (Posts: 102; Member since: 04 Mar 2013)


lol mr iphone user up here. still dual core... still 1gb of ram... still 8 mp camera.... not even 720p screen ....

posted on 24 Nov 2013, 17:37 5

2. darkkjedii (Posts: 12643; Member since: 05 Feb 2011)


Come to Vegas, I'll work there. That'll be fun to see first hand how these products get assembled, I'd leak pics too.

posted on 24 Nov 2013, 19:24

5. Finalflash (Posts: 1908; Member since: 23 Jul 2013)


Not in the states you won't, there is actually rule of law. Probably have to sign an NDA and what not.

posted on 24 Nov 2013, 19:34

6. joey_sfb (Posts: 3247; Member since: 29 Mar 2012)


you miss out on the statement, "using automated production equipment" and their equipment service engineers most likely import from the equipment manufacturers.

I have seem one of this high tech factory, they have a very high machines to human ratio. Nevertheless the US government would benefit from taxes.

posted on 24 Nov 2013, 18:06 2

3. woodshop20 (Posts: 459; Member since: 14 Sep 2013)


I guess we can now expect a $1500 iPhone. People are gonna need to sell both their kidneys to get one.

posted on 24 Nov 2013, 19:37

7. Finalflash (Posts: 1908; Member since: 23 Jul 2013)


No, that would be a waste, a baby nets more these days according to previous iFan shenanigans.

posted on 25 Nov 2013, 05:55

12. Ninetysix (Posts: 1680; Member since: 08 Oct 2012)


You seem to be under the impression that Apple is the only client of Foxconn. Google search the client list so you don't embarrass yourself.

posted on 24 Nov 2013, 23:33

10. nctx77 (Posts: 576; Member since: 03 Sep 2013)


I think this so that apple can control leaked products before launch.

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