With its first smartphone designed completely in-house, Google Inc is demonstrating one of the benefits of moving production from Asia to the US: It is letting buyers customize phones to give them their own style.
Workers at the factory in Fort Worth, Texas, assemble the custom phone and Google ships it to the buyer’s door within four days.
The Moto X is going on sale in about a month via all four US national wireless carriers — Verizon, AT&T, Sprint and T-Mobile — starting at US$200.
Photo: Bloomberg
Initially, only AT&T will offer the customization option, but Google said it hopes to make it available across all carriers soon. The company will offer 18 different back covers ranging in color from “spearmint” to “cabernet,” a choice of black or white fronts and seven different metallic accents for details like the volume button. That makes for 252 possible style variations of the handset.
The Moto X is the first smartphone to be assembled in the US. Even though the concept of the smartphone was pioneered there and many phones have been designed in the US, the vast majority of phones are assembled in Asia.
The Fort Worth factory will let Google stamp the phone as “Made in the US,” but assembly is just the last step in the manufacturing process, and accounts for relatively little of the cost of a smartphone. The cost largely lies in the chips, battery and display, most of which come from Asian factories. However, Google sees other value in a US factory.
“Over time, by having the engineers closer to the factory floor, we’ll be able to innovate faster and develop products that actually are quite interesting down the road,” said Dennis Woodside, head of Google’s Motorola division.
The factory is owned and run by Flextronics International Ltd, a Singapore-based contract electronics manufacturer and is set to employ 2,000 people.
Google bought Motorola Mobility for US$12.4 billion last year. While it launched some phones after the acquisition, they were designed while Motorola was still independent.
The Moto X is the first phone that “gives you some indication of how Google is thinking of hardware,” Woodside said in an interview.
Google has previously worked with other phone manufacturers to create Google-branded “Nexus” phones as launch platforms for new versions of Android.
The most unusual feature of the Moto X, apart from the customization option, is that it is always listening for its owner’s voice. When it hears the phrase: “Ok, Google now...” followed by a command like: “call Bob,” it will wake up from standby and execute the command — provided it understands it.
Most smartphones offer voice control, but it is usually activated by pressing a button.
Google is backing the launch with a big marketing campaign, including TV adverts. The Moto X represents its best chance this year to make back some of the money it spent on buying Motorola, and the US$1.7 billion the division has accumulated in operating losses since the acquisition.
Motorola has become marginalized in the global smartphone market, taking just 1 percent of recent sales, according to research firm IDC. Google has slashed Motorola’s workforce to 4,600 people, down from 20,300 last year.
The acquisition was motivated mainly by Google’s desire to own Motorola’s patent portfolio, which provides it with ammunition to defend fellow makers of Android phones from Apple Inc’s and Microsoft Corp’s patent claims.
The patents have not proved very useful so far, but analysts see another value in Motorola: it gives Google a toehold in smartphones, acting as insurance against the possibility that Samsung Electronics Co, the dominant maker of Android phones, could jump ship to another operating system or create its own version of Android.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
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