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Only about 1B people in EU+US. Majority of people only need one phone. If I were a cell manufacturer, I'd drive down costs to service the other 7B people. Of c
by sosowegowelp 1y ago
Only about 1B people in EU+US. Majority of people only need one phone. If I were a cell manufacturer, I'd drive down costs to service the other 7B people.
Of course, you won't make the same margins as EU+US business. Not sure if that is enough incentive to onshore consumer manufacturing.
- rtkwe 1y agoThe margins get really thin after the first 2 billion or so. Middle income globally is ~10-20 PPP dollars a day and that's only ~17% of the world's population. They're generally radically different phones between markets too no one's really dominating the cheap phone market. https://www.pewresearch.org/short-reads/2021/07/21/are-you-in-the-global-middle-class-find-out-with-our-income-calculator/#:~:text=As%20our%20study%20defines%20it%2C%20people%20who,and%20high%20income%20on%20more%20than%20$50. https://www.pewresearch.org/short-reads/2021/07/21/are-you-i...
- asadotzler 1y agoThe margins are only thin if you're used to 40% as Apple has been. They're not at all so thin that the rest of the pack aren't making actual profit filling the gap for the other 7B people who aren't well off westerners.