Quote:
Originally Posted by HamsterRage
So doesn't that mean that even if the assembly price doubles, which would be a huge increase, that the cost of an iPad would only go up $6.94? Which would only be 3% on the $200 cost to build the whole iPad.
And during the time it takes for that increase, all the component parts are going drop by a total even higher than that $6.94, won't they?
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This is why it's total BS that it costs too much to mfg products in the US....given a $300+ mark-up over cost, or about 150% of mfg costs, if the labor costs tripled you would hear Steve Jobs whine like the greedy POS he is that they would need to add $200 to the cost of the iPad to cover increased labor costs. Of course it would also extend to phone mfg's, TV mfg's you name to the made in Guadulawhothehllcares countries where workers cannot even get paid well enough to own the very products they make. This is the inherent flaw in our market setup. Yes we need free markets BUT I do not buy into the whole "we are making life everywhere better by taking jobs OUT of your country to some dirt floor factory Quonset hut factory". It's all about the cookie cutter "business majors" we chun out all with the same mindset on how to run a business and what defines a "successful" business. Once upon a time it was enough to take care of your employees, provide for your families and as long as the ROI was in the black people were happy....now everyone has to have year-over-year percentage increases...meaning the rate of increase has to increase every quarter, or whatever period. No longer is it fine to have a 10% ROI it has to grow by xx% over the previous period which by definition is inflationary once you reach market saturation...the rate of increase has to keep raising, which if a spin-doctor way of saying the growth rate needs to keep inflating every period, as in it has an INFLATION RATE which only devalues funds earned during the previous period because the current price has a higher rate of price increase.
Might not have worded that exactly as I wanted but the idea distilled down is the current ideas taught to "business majors" is that inflation is GOOD for The Company and no concern is given to customer retention any longer...hence 2hr waits on hold for customer service while Dave from AT&T is on another Line as Joe from Dell support...
I don't blame those with the jobs, I blame the whole corrupted market system we have devolved into as a planet.