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Foxconn Raising Prices on Apple?
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I see companies in the People's Republic also believe in PROFIT. As an aside iPad 2 prices just went up.
One rule to consumer electronics. EVERY Contract Manufacturer no matter how large of an IP portfolio they have is always replaceable.
Other CM's will come in and redesign your product for you getting rid of the competition IP to have your brand on their design.
While I doubt if Apple will do that, I'm sure if Foxconn gets too bitchy they will be kicked out of bed and soon replaced by another lover.
Other CM's will come in and redesign your product for you getting rid of the competition IP to have your brand on their design.
While I doubt if Apple will do that, I'm sure if Foxconn gets too bitchy they will be kicked out of bed and soon replaced by another lover.
A few problems with this. First, some task are just more suited to hands. For example, the CCLF 's that many of us use was produced by a person in China twisting the glass by hand. You would think a machine could do it, but its done by hand. Second, is environmental regulations; while Apple touts the environmental report of their products, they really don't tout the effects of the manufacturer process. That is not a mistake; its a willful omission.
This marks the beginning of the end for cheap prices. Workers in China are demanding more money which increases the cost of manufacturing. Because we depend on one country for 90% of our products, prices are going to go up on everything from clothes to furniture to building materials.
The recession isn't over. I'm in contract manufacturing and it's already happening.
The recession isn't over. I'm in contract manufacturing and it's already happening.
Prices are only going to go up in the US on everything from food to electronics. If you didn't know, the Fed is about to undertake another major effort to debase the US Dollar by creating a load of new money. The currency is already extremely weak, declining in value almost every day against a basket of the world's top currencies.
You don't expect foreigners to keep prices the same while the US Dollar continues to get weaker and weaker against pretty much every other currency? As the US Dollar grows weaker, the more resistent foreign businesses will be to accepting it in return for goods and services.
You don't expect foreigners to keep prices the same while the US Dollar continues to get weaker and weaker against pretty much every other currency? As the US Dollar grows weaker, the more resistent foreign businesses will be to accepting it in return for goods and services.
Apple will find a new partner. There will always be another guy willing to do it better and for less. Maybe the new company will actually be able to manufacture the white iPhone.
And what's with the excess amount of non-Chinese people in their image.
This is the company's only photo with all of the 7 non-Chinese employees.
I wonder if we will see an increase in the end product... I also wonder if Apple has built into it's price the ability to absorb shifts in manufacturing cost.
Also.. I doubt we will see the return of any manufacturing here in the US. Even if the overall cost of production goes up we could never compete with the price of the raw materials. NPR recently did a segment on this topic and argued that we would never see the return of product production simply do to the cost of the materials.
Also.. I doubt we will see the return of any manufacturing here in the US. Even if the overall cost of production goes up we could never compete with the price of the raw materials. NPR recently did a segment on this topic and argued that we would never see the return of product production simply do to the cost of the materials.
I would like
it if Apple were to bring their manufacturing back to the U.S., enough with the outsourcing. It has proven to be a thorn in Apple's side with the decline of quality control.
Why not bring jobs and tech careers back to the U.S....while I wouldn't pay more than I did for an iPhone, I would pay a little more for an Apple computer knowing it was built here. My U.S. build history with Apple being only one dud in 11 years, as opposed to 2 dud outsourced Macs in 2010.
it if Apple were to bring their manufacturing back to the U.S., enough with the outsourcing. It has proven to be a thorn in Apple's side with the decline of quality control.
Why not bring jobs and tech careers back to the U.S....while I wouldn't pay more than I did for an iPhone, I would pay a little more for an Apple computer knowing it was built here. My U.S. build history with Apple being only one dud in 11 years, as opposed to 2 dud outsourced Macs in 2010.
FOXCONN is nowhere near the only facilities able to produce these products. Not even close.
I see a resurgence in assembly throughout the world, with a mix of automated assembly and post human evaluation.
I see a resurgence in assembly throughout the world, with a mix of automated assembly and post human evaluation.
No, I think Apple is best served not having that noose tighter around it's neck.
For the suicide issue alone, FoxConn would be a huge liability.
Enter a deep pockets owner that would actually want and need as blemish free a reputation even if just for marketing reasons, and you would have ambulance chasers, political and environmental activists literally swooning.
I would imagine there would be a collective feeling of a tightness in their chests in Cupertino just thinking about it.
To the people suggesting full automation with minimal workers in the US, this was already tried with NeXT and was shown to not have any benefit over foreign manufactured machines, including defect rates.
Do you honestly not think this stuff is worked on, studied, and refined by the top minds in the tech industry? You don't think their manufacturing and distribution is constantly honed to perfection?
I think it's funny that random forum posters think they have better "ideas" than people who have been in the business with massive success for decades.
Do you honestly not think this stuff is worked on, studied, and refined by the top minds in the tech industry? You don't think their manufacturing and distribution is constantly honed to perfection?
I think it's funny that random forum posters think they have better "ideas" than people who have been in the business with massive success for decades.
To everyone who thinks that its as easy as buying Foxconn or going it alone is the answer - get back to reality. Look up the BOM for the iPhone - guess what is there? Yep, lots of specialized companies that owns (or licenses) the IP's used in the manufacturer of the devices. That fancy IPS display - lots of IP there, the baseband - you bet its full of IP, I could continue but the point is clear. It boggles the mind to think of all the IP that Apple would have to license to make the iPhone. If they just bought parts, they are still faced with a rising increase in cost of manufacture of the individual components.
I would also pay a little more for a US made computer; but 'little' just does not apply to this situation. Where to begin? Lots of environmental regulation, a comparatively 'entitlement thinking' work force, high health care cost, high litigation potential by workers and others. Its sad to say, but the current and foreseeable future for the United States will not allow us to manufacture consumer electronics here.
I think using a 25 year old experience in automation is a punt. While automation is not the answer to everything, its gotten better in the interim.
I would also pay a little more for a US made computer; but 'little' just does not apply to this situation. Where to begin? Lots of environmental regulation, a comparatively 'entitlement thinking' work force, high health care cost, high litigation potential by workers and others. Its sad to say, but the current and foreseeable future for the United States will not allow us to manufacture consumer electronics here.
I think using a 25 year old experience in automation is a punt. While automation is not the answer to everything, its gotten better in the interim.
More apple would go from making 400 per iPhone to 200 per iPhone. Oh such a huge loss their. Instead of making 200%+ per profit it would be come a more reasonable 30%. I would not feel sorry for them.
Hurts others far more than Apple
This actually works to Apple's benefit. They're the only company out of those three that is actually making money in the smartphone space.
This actually works to Apple's benefit. They're the only company out of those three that is actually making money in the smartphone space.
So basically ...this foxconn company (I say this to make it smaller). Which is like bending over backwards for Apple. Expands their office infrastructure for a couple of years. Have MULTIPLE apple products being produced there. Opening up new facilities to keep up with demand...all for Apple. And They go up to the man and say "we want to increase prices".
...hmmm.
I wonder what Apple does. And I wonder how many other companies are drooling for an opportunity to try and become the new foxconn. Then we will see what happens to those factories now after Apple leaves. (not saying they will). If I were foxconn, i wouldn't try and open pandora's box.
...hmmm.
I wonder what Apple does. And I wonder how many other companies are drooling for an opportunity to try and become the new foxconn. Then we will see what happens to those factories now after Apple leaves. (not saying they will). If I were foxconn, i wouldn't try and open pandora's box.
Sure, shills can write to forums about how iPhones will cost $2000 and American workers are stupid, shiftless druggies and they might even get a refurb iPhone or something for doing that.
Those political ads about outsourcing are supposedly very effective. People will still shop at WallofChinaMart, but high profile companies will be under a lot of pressure to built some reasonable percentage of their stuff here.
Apple would be smart to lead the way and get a lot of favorable press.
Those political ads about outsourcing are supposedly very effective. People will still shop at WallofChinaMart, but high profile companies will be under a lot of pressure to built some reasonable percentage of their stuff here.
Apple would be smart to lead the way and get a lot of favorable press.
Of course, it's only fitting that some of you say "Bring back manufacturing to the US but I'm not going to pay 2 or 3 times more for an Apple product. Just a little more, maybe..." How much more is little? $100 for an iPhone? $500 for a base iMac? How will Apple compete against Samsung, Sony, LG, Toshiba, etc. who are already based in Asia with manufacturing in China, India, Indonesia and other low-cost labor nations?
Also, why single out Apple for outsourcing? Where do you suppose HP, IBM, Dell, Cisco, EMC, and Motorola, etc. get most of their gear made? What other American consumer electronics company is out there besides Apple? I doubt a single cell phone, TV, DVD player, Internet wireless router, refrigerator, microwave oven, washer/dryer, home theater audio system, etc. are made in the US. I'm sure some boutique tube hi-fi audio stuff is still made in the States, but in the big picture, that kind of stuff can't even be considered a niche market.
I work in the musical instrument industry (more specifically, electric guitars) and have been in it for 20+ years. Where are the vast majority of electric guitars - one of the most American of all products - made in the world? China and Indonesia, of course. How about clothing? How about furniture? How about the drywalls in your home? Even a lot of the foods you see in mass merchandisers come from Asia. We are just a nation of consumers, remember? Retail makes up 70% of the American economy.
How many here want to sit on an assembly line and insert parts on a phone or a TV? How many of you want a massive pollution-producing factory near your neighborhood? None of us do. We'd rather drive to a mall or a superstore and just buy and eat stuff. And we'll borrow money to do so. This is essentially what America has become. We're addicted to just consuming stuff, including buying houses and gas-guzzling cars beyond our means. And now we say, "Bring the jobs back but I'm not going to work there for minimum wage and don't build the factory in my neighborhood."
I've traveled to China since '93 and still go there on business every 2~3 months. There's no turning back now. The Pandora's Box was opened a long, long time ago when we never heard of Sony or Toyota, let alone Samsung and Foxconn. China will slowly start going through what Japan went through in the 70's and 80's and what Korea went through in the 90's and the past decade. But China is so huge that they still have long, long ways to go before things get expensive there.
It's kind of difficult to appreciate or comprehend the scope and scale of China (as well as of India). China's population is equal to that of two United States and all of Europe combined. And India will overtake China in population in another decade or so. Every one of three human beings on earth is either a Chinese or an Indian. And they are progressing fast - at an exponential rate compared to how things are moving in the West. China's economy will become the largest in the world by 2030 (probably sooner) and be twice the size of that of the US by the middle of the century.
It doesn't mean we are doomed or anything. We just have to accept the fact that we're not the major dominant power we used to be and never will be. We have to cooperate and compete at the same time - just like Apple does with Samsung, for instance. They both need each other. We need China and China needs us. In fact, all nations need every other nation that has something to sell - oil, natural gas, steel, copper, woods, fish, rice, clothing, and gadgets like the iPhone, etc. We sell high-tech services and software, weapons, Hollywood movies, financial services and consumer goods, etc. - generally speaking... We pushed for a global free market and that's what we've got. We just have to deal with it.
Also, why single out Apple for outsourcing? Where do you suppose HP, IBM, Dell, Cisco, EMC, and Motorola, etc. get most of their gear made? What other American consumer electronics company is out there besides Apple? I doubt a single cell phone, TV, DVD player, Internet wireless router, refrigerator, microwave oven, washer/dryer, home theater audio system, etc. are made in the US. I'm sure some boutique tube hi-fi audio stuff is still made in the States, but in the big picture, that kind of stuff can't even be considered a niche market.
I work in the musical instrument industry (more specifically, electric guitars) and have been in it for 20+ years. Where are the vast majority of electric guitars - one of the most American of all products - made in the world? China and Indonesia, of course. How about clothing? How about furniture? How about the drywalls in your home? Even a lot of the foods you see in mass merchandisers come from Asia. We are just a nation of consumers, remember? Retail makes up 70% of the American economy.
How many here want to sit on an assembly line and insert parts on a phone or a TV? How many of you want a massive pollution-producing factory near your neighborhood? None of us do. We'd rather drive to a mall or a superstore and just buy and eat stuff. And we'll borrow money to do so. This is essentially what America has become. We're addicted to just consuming stuff, including buying houses and gas-guzzling cars beyond our means. And now we say, "Bring the jobs back but I'm not going to work there for minimum wage and don't build the factory in my neighborhood."
I've traveled to China since '93 and still go there on business every 2~3 months. There's no turning back now. The Pandora's Box was opened a long, long time ago when we never heard of Sony or Toyota, let alone Samsung and Foxconn. China will slowly start going through what Japan went through in the 70's and 80's and what Korea went through in the 90's and the past decade. But China is so huge that they still have long, long ways to go before things get expensive there.
It's kind of difficult to appreciate or comprehend the scope and scale of China (as well as of India). China's population is equal to that of two United States and all of Europe combined. And India will overtake China in population in another decade or so. Every one of three human beings on earth is either a Chinese or an Indian. And they are progressing fast - at an exponential rate compared to how things are moving in the West. China's economy will become the largest in the world by 2030 (probably sooner) and be twice the size of that of the US by the middle of the century.
It doesn't mean we are doomed or anything. We just have to accept the fact that we're not the major dominant power we used to be and never will be. We have to cooperate and compete at the same time - just like Apple does with Samsung, for instance. They both need each other. We need China and China needs us. In fact, all nations need every other nation that has something to sell - oil, natural gas, steel, copper, woods, fish, rice, clothing, and gadgets like the iPhone, etc. We sell high-tech services and software, weapons, Hollywood movies, financial services and consumer goods, etc. - generally speaking... We pushed for a global free market and that's what we've got. We just have to deal with it.