Quote:
Originally Posted by pitargue
The big story of Apple is to prove to the MBA's of the USA that off shoring is bullcrap. Just check out any box an Apple product comes in: Designed in Cupertino, CA. This means all the developers and marketing people all are in one location. The success of Apple shows that face to face interaction of all departments makes pretty damn good products. Off shoring just cuts (perceived) cost which just fragments the critical thinking due to time zones.
The greatest strength of the US is ideas. Don't see how ideas can get anywhere with time and distance in the way. The hallway conversations can't be quantified on a finance sheet, which the bean counters don't get.
The return on investment of off shoring just means you're just sending your Intellectual Property (IP) off shore, with shady laws to protect that IP. Most executives can't think past one quarter with no regards to long term strategy. Shameful. Of course this lesson will be bypassed in hopes that reduced costs can bring a company on the path of success. (Penny wise, pound foolish.)
And Foxconn is not Apple.
IMHO
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You don't know things work.
The model works this way: You keep enough jobs onshore to minimize profits generated in the high tax location. You build the product elsewhere and keep the profits in the low tax location.
We will never get low tech manufacturing back here. But high tech manufacturing should be here. It isn't because of the very high taxes. We can "onshore" a lot of this manufacuring if we change our taxation model to sales tax and stop taxing all forms of income.