3 ms·
Yeah, this makes sense to me. I have not read the linked article, but I wonder, does it discuss this? I caught another comment lower down that says the articl
by bmer 4y ago
Yeah, this makes sense to me.
I have not read the linked article, but I wonder, does it discuss this?
I caught another comment lower down that says the article mentions that labour costs in India are "only 2x" less than the labour cost in China.
As if "only 2x" is "trivial"...
- throwawaymaths 4y agoThere is momentum due to large capital costs associated with building the facility and getting the hardware to perform the manufacturing over there in the first place, etc. When labor costs are low, capex can be a bigger piece of the pie and a larger contributor to the effect
- quesera 4y ago2x a small number is sometimes also a small number. I speculate that labor is not a significant contributor the cost to produce an iPhone.
- MagnumOpus 4y agoMore precisely, assembly labour is not a significant contributor. There's labour in other parts of the chain that make up a big chunk of the cost - hardware design, software design, firmware, chip design, fabbinig, component manufacture, shipping, retail, warranty repair and whatnot, but those don't happen in China or India, so they won't change if the assembly location changes.