AAPL's Profit Margins & Foxconn - Stunning Development In China-US Wage Parity

Looks like American minimum wages earners may be the newest competition against Chinese industry. Supposedly this is a good thing as it will "bring back manufacturing" to the US. After all, who doesn't want to work in an environment like that created by FoxConn? I once heard this type of scenario described as "Watching your mother in law driving over a cliff in your new Cadillac."

What Will AAPL's Profit Margins Be? Just Ask Foxconn... And Discover A Stunning Development In China-US Wage Parity

The reason Foxconn may be of interest is that as Reuters reports, as a result of soaring wages on the mainland, and in its ongoing strategy to keep worker compensation as razor thin as possible, the fabricator is now actively looking to expand outside of China. Among the places considered? Indonesia of course. And, drumroll, the United States! In other words, from the perspective of Foxconn, US labor now has greater wage competitiveness than China.

It is quite possible that while China was napping, the Fed's exporting of wage inflation just succeeded to get the US to relative wage parity with China - something most considered impossible as recently as 5 years ago. However, if indeed true, this means that the Chinese response will only have more urgency now that it suddenly may find itself competing with workers from places such as the US.

I suppose this is competition, we are now competing with underpaid Chinese and Indonesian workers. Just what the banksters and politicians wanted to begin with. Mission complete?

YAY they save us, by dooming us?

I'm confuse

Oh well its good to see made in USA again

reply to post by Indigent


Maybe so. Anything is better than the nothing many have now. Also FoxConn would need to adhere to US labor laws so hopefully the following won't be happening.

After a rash of suicides, FoxConn responded to widespread criticism of working conditions at its factories by reducing the amount of time employees could work overtime, among other measures. The problem is that the new policy, which adheres to Chinese labor laws, is making it hard for employees to earn a living because they are working fewer hours at the higher overtime rates, the Wall Street Journal reports. Source...

I predict though if they don't get guaranteed ways around some laws FoxConn will simply go elsewhere.

reply to post by Bassago


Man, that's rich. If I weren't a nbee, S/F. Gotta love it.

I've learned a couple of simple US/China equations myself :

Circle saw blade for construction. Almost fully automated production. Before China- $4... after cheap labor and sweatshop production ? $14

American manufacturer : 600 lawyers

China manufacturer : 6

There goes the profit. Bigshot shareholders eliminate competition for " net profit ', they don't lower gross income.

Now. at least we might get huge plasma screen sunrises... can't wait .