Google recently announced that Flextronics has agreed to purchase two manufacturing facilities owned by Motorola. Motorola is a wholly-owned subsidiary of Google. The factories in question are located in Tianjin, China, and Jaguariuna, Brazil. The assets and employees of these facilities will be transferred from Google to Flextronics. At the same time, Flextronics has signed a service agreement with Google to manufacture its Android and other mobile devices moving forward. The companies did not disclose terms of the deal, which requires regulatory approval before it can be completed. Google and Flextronics expect the deal to close during the first half of 2013. The news follows Google's announcement that it plans to shutter Motorola's research and design and marketing organizations in Korea.
Why would Google do this? Motorola Mobility makes not only Android phones, but also iDEN phones and Feature phones. Are they trying to become fabless? Or are they only interested in the IP's? Them again it could be cheaper in the long run if they have this contract. But damn, I would hate to be working for Motorola right now.
In case you've been hiding under a rock the past 6 months, Motorola has already lost it's largest IDEN customer, Nextel. Sprint stopped selling Nextel devices back in June and won't be supporting them at it's in-store service and repair centers after ... (continues)