Even though the concept of the smartphone was pioneered in the US and many phones have been designed here, the vast majority of phones are assembled in Asia.
The Texas factory has allowed Google to stamp the phone with “Made in the US,” although 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.
The factory employs about 700 workers who assemble the Moto X smartphones for the US market, Moss said. He declined to comment on whether Motorola would retain the workers.
Google bought cellphone pioneer Motorola Mobility for $12.4 billion in 2012. Originally retailing the Moto X for $600, amid flagging sales, Google dropped the price to $399. Still, only a fraction of the units were sold compared to the Apple iPhone.