Linked by Thom Holwerda on Mon 19th Mar 2012 08:24 UTC
In the News Rob Schmitz, the Marketplace reporter who uncovered Daisey's lies, stated: "What makes this a little complicated is that the things Daisey lied about seeing are things that have actually happened in China: Workers making Apple products have been poisoned by Hexane. Apple's own audits show that the company has caught underage workers at a handful of its suppliers. These things are rare, but together, they form an easy-to-understand narrative about Apple." It's what I'm already seeing in the Apple-verse (and beyond): the actual issues that have truly and honestly happened are being shuffled under the carpet because some no-name dude I'd never heard of lied, as yet another way to soothe people's conscience. The west is exploiting workers in the east for a few percentages of profit margins. This is a reality, whether some dude lied about it or not.
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Member since:

It's much easier to build a new factory in China. In the US you need permits, persuade commissions and then employ people who ask a lot more money to do less work than the Chinese ones.

In other words, it's a lot more hassle to start producing something at a higher cost than you currently do in China.

Reply Parent Score: 2

Johann Chua Member since:

I wonder how much longer China can get by on being cheap.

Of the Samsung products in the house the LED TV was made in Thailand (though the power cord, of all things, was made in China), the Blu-ray player was made in Indonesia, and my Galaxy Ace was made in Vietnam. Now, it just might be slightly cheaper to make products sold in South East Asia within SEA, rather than China, due to ASEAN trade agreements and shipping costs.

IIRC the Steve Jobs biography also lamented the lack of qualified engineers in the U.S., which gets in the way of returning production state-side.

Reply Parent Score: 2

OSbunny Member since:

They realise that cheap isn't going to be their competitive advantage for long. They're working on a number of different ways to get around that:

- Value addition: Maybe you've heard of Huawei or Haier which are two Chinese brands. They're getting into branding now.

- Restricting raw material exports: The stuff that gets made in Indonesia or Thailand still needs raw materials that often get sourced from China. So the Chinese want reserve raw materials for their local manufacturers who export a more value added products.

Also they're investing in other countries that have raw materials they need and locking down the supply that way. You see a lot of that happening in Africa.

- Better infrastructure: China really wins on infrastructure. That is why they attract so many manufacturers.

Reply Parent Score: 1