Good Morning Vietnam

June 8, 2010 -

Is China declining as an affordable manufacturing solution for companies like Apple, Nokia, Microsoft, Sony, Nintendo and more? Not quite yet, but as the Chinese government, and corporations like Foxconn are forced to raise wages, the bottom line for foreign companies may get smaller and smaller. The bottom line rules the universe. Consumers could feel it at the checkout line or corporations will take serious steps to keep manufacturing costs down. 

The New York Times and Wall Street Journal predict a future where the Apple's of the world exit China for newer, cheaper labor markets like Vietnam, India and Indonesia. Some say that discussions about such moves are already underway. Foxconn, faced with a string of suicides and controversies surrounding the general well-being of its massive workforce, has raised the pay of its employees twice this year and cities like Beijing plan to raise those wages even more. Even more alarming for foreign companies doing business in China is a movement by the government to give workers more rights.

Naturally, this scares corporations who see the evaporation of a market that served them well, and saved them a lot of costs. Add to that Inflation within China and a projected increase in its currency value, and it is the perfect storm for companies to get the hell out. Naturally higher costs for a company like Apple may lead to higher prices for that iPhone or iPad at retail if the labor situation in China is seriously reformed.

Source: Engadget

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Comments

Re: Good Morning Vietnam

They will just continually move to new poor countries.  As those countries become rich from all the work and labor prices go up, they will again move to the next poor country.  There's certainly a bunch of them available.

 
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PHX Corp@Adam802 We'll break out the popcorn in June12/19/2014 - 9:23pm
ZippyDSMleeMaskedPixelante: I'm itching to start it too but I will wait till the patch goes live. >>12/19/2014 - 7:52pm
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MaskedPixelanteNevermind. Turns out when they said "the patch is now live", they meant "it's still in beta".12/19/2014 - 5:07pm
MaskedPixelanteSo I bought Dark Souls PC, and it's forcing me to log into GFWL. Did I miss something?12/19/2014 - 5:00pm
Matthew Wilsonhttp://arstechnica.com/tech-policy/2014/12/republicans-may-have-plan-to-save-internet-providers-from-utility-rules/ this is intreasting. congress may put net nutrality in to law to avoid title 2 classification12/19/2014 - 2:45pm
Matthew Wilsonhttp://www.polygon.com/2014/12/19/7421953/bullshit-cards-against-humanity-donated-250k-sunlight-foundation I have to admit I like the choice o organization. congrats to CAH.12/19/2014 - 1:51pm
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ZippyDSMleeAnd I still spent 200$ in the last month on steam/GOG stuff sales get me nearly every time ><12/19/2014 - 10:55am
ZippyDSMleeMaskedPixelante:And this is why I'm a one legged bandit.12/19/2014 - 10:51am
ZippyDSMleeE. Zachary Knight: I buy what I can as long as I can get cracks for it...then again it I could have gotton Lords of the Fallen for 30 with DLC I would have ><12/19/2014 - 10:50am
MaskedPixelantehttp://www.joystiq.com/2014/12/19/marvel-vs-capcom-origins-leaving-online-storefronts-soon/ Speaking of "last chance to buy", Marvel vs. Capcom Origins is getting delisted from all major storefronts. Behold the wonders of the all digital future.12/19/2014 - 9:59am
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E. Zachary KnightInfophile, Tha is why I buy only DRM-free games.12/19/2014 - 9:37am
MaskedPixelanteNordic is back on GOG for one weekend only. And at 85% off no less, which is kind of a slap in the face to people who paid more during the "NORDIC IS LEAVING FOREVER BUY NOW OR FOREVER HOLD YOUR PEACE" sale, but whatever...12/19/2014 - 9:28am
InfophileRe PHX's link: This is one of the reasons the digital revolution isn't all it's cracked up to be. There's also the flip side where Sony can block access to games you've bought if they ban your account for unrelated reasons. All power is theirs.12/19/2014 - 8:52am
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