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Or the the rising wages in China means that building a fully automated line isn't as cost-prohibitive as it was in the past. And with states/cities throwing tax
by mikereedell 14y ago
Or the the rising wages in China means that building a fully automated line isn't as cost-prohibitive as it was in the past. And with states/cities throwing tax incentives at companies it doesn't matter where the automated line is so long as it can be integrated into the supply chain easily.
It's likely a combination of lower volume, like you state, cheaper automation, rising wages and some political incentives like tax breaks, etc.
- axx 14y agoI bet it'll be the next Mac Pro. Low quantity, highly priced.
- goatforce5 14y ago...and, i'd guess, a higher than average percentage of built-to-order machines.
- KaoruAoiShiho 14y agoAnd the buyer would be happy to pay a premium.
- larrywright 14y agoThat was my first thought too. It's probably the only one that makes sense.
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- pretoriusB 14y ago>Or the the rising wages in China means that building a fully automated line isn't as cost-prohibitive as it was in the past. The wages don't play much role in it. There is an article about the last Apple US factory, back when they used to make stuff here, and the guys managing it explain that it wasn't the wages that drove them to China (the extra cost would be negligible in a product's price, like a few extra dollars compared to a $500 price tag), but the economies of scale, with supplier factories for glass, metal, SSDs, parts, etc being literally next door to your factory, something that wasn't true in the US.
- jfb 14y agoYes. It's the logistics that make the giant Chinese factory cities the preferred manufacturing facilities. Wages are a happy side-effect of doing business with a lawless regime.
- eyfdhbvccx 14y agoNo, low wages are due to pre-1978 history. At current "lawless regime" they are growing fast.