Flextronics International Ltd. (NASDAQ:FLEX) – Opening of Smartphone factory in U.S. – GOOG, MMI


Dallas, Texas 09/12/2013 (Financialstrend) – Flextronics International Ltd. (NASDAQ:FLEX) an American supply chain Solutions Company is a global leader in design, manufacture, ship and aftermarket services to original equipment manufacturers (OMEs) in the markets. The company uniquely provides end to end solutions with the help of its innovative and proprietary systems to boost customer competitiveness and success. The company’s main core is to solve customers’ most challenging problems more cost effectively in a better and faster way than any other company. In terms of revenue the company is the second largest global Electronics Manufacturing Services (EMS).

Google Inc.(NASDAQ:GOOG) is looking to produce a smartphone in the United States with the intention to maintain profit margin, which is almost impossible in the United States. But the company is hoping to change the scenario. Google who acquired Motorola Mobility Holdings Inc. (NYSE:MMI), along with Motorola’s manufacturing partner Flextronics International Ltd. (NASDAQ:FLEX) reinstated that one shall be forgiven for the longing belief that to produce smartphones in the United States while maintain profit margins could be almost impossible.

The CEO of the company Mike McNamara who employs 250 people in Longview said in a separate interview that the plant will generate 2500 jobs in the coming future as every week it is assembling 1,00,000 Moto X Android phones. Further, he also mentioned that the labour cost for manufacturing mobile phone in the United States is about $12 to $ 14 per hour which is three times higher as compared to $4 per hour in China.

McNamara also said that FLEX and MMI could have put this facility anywhere in the world, but they chose Texas, as there are benefits for operating a facility in the U.S., like lower shipping and logistics costs along with the ability to get the phones to users in the country in just four days.