Ex-Motorola Exec: Smartphone Manufacturing in The U.S. Is Doomed

In 2013, Motorola tried to claw its way into a smartphone market dominated by Apple and Samsung with a bold promise: Made in the USA.

That same conundrum Motorola faced over a decade ago is now resurfacing as President Donald Trump pressures Apple and Samsung to manufacture their mobile devices in the U.S. or face steep tariffs. (Photo: Justin Ormont Eva Lee Wikimedia Commons)

“There was a segment of customers that said, ‘Hey, if you produce products in the U.S., I’m more likely to consider them,’” said Dennis Woodside, the former CEO of Motorola and now CEO of enterprise software provider Freshworks, in an interview with Lisa Eadicicco of CNN.

But the effort was short-lived. Motorola shut down its Texas factory the following year and abandoned domestic assembly of the Moto X—its then-flagship phone meant to compete with the latest iPhone and Samsung Galaxy models.

Woodside’s experience highlights why many tech products, particularly smartphones, are still primarily assembled in Asia and South America rather than in the United States.

Proximity to crucial suppliers and lower labor costs are only part of the equation. A wider gap in manufacturing expertise and the difficulty of filling factory jobs make bringing smartphone production back to the U.S. extremely challenging.

That same conundrum Motorola faced over a decade ago is now resurfacing as President Donald Trump pressures Apple and Samsung to manufacture their mobile devices in the U.S. or face steep tariffs.

Higher import levies on goods from China—where many electronic devices are assembled—are set to take effect on August 12, unless the two countries reach a deal or extend negotiations.

India—now the world’s top exporter of smartphones to the U.S.—will also be hit, facing a 25% tariff when new rates take effect on August 7.