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Susan Fourtané
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Blogger
Re: neat trick
Susan Fourtané   6/29/2012 10:02:38 AM
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HH, 

Change is always possible when there is still life. :) Something similar to what happens with hope, remember? 

What makes me say that Apple consumers will always remain Apple consumers, and that will not change is how I see Apple products evolving, and how rapidly I see iOS app developers develop and improve apps. Apps can be something that many consumers will always take into account at the time of choosing a tablet, so it's not only the hardware what counts here, not even the price in some cases. 

"The next revolutionary device may not be an Apple product."

Is there one that you can already think of as a revolutionary device, not being an Apple product? 

-Susan 

Hospice_Houngbo
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Supply Network Guru
Re: Good PR Move - But A Good Sign for Local Manufacturing Too
Hospice_Houngbo   6/29/2012 9:57:26 AM
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@SteveCummins,

I am not defending Google, but I think they are doing their best to abide by their motto "Don't be evil". 

Having said that, the message Google is sending is clear :  "We care for the economy of the country that has made us what we are today". We may argue that a company is beholden to its investors, not to its country, that is right. But there is always a "patriotism spirit" in each one of us.

Susan Fourtané
User Rank
Blogger
Re: neat trick
Susan Fourtané   6/29/2012 9:49:40 AM
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Hi, HH 

Indeed, it's a good start. If it's like the New York Times reported, we should start looking at this in a positive way. We'll see what happens with the Nexus Q sales, and how the U.S. market responds. Do you know the price of the Nexus Q? 

-Susan 

Hospice_Houngbo
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Supply Network Guru
re:
Hospice_Houngbo   6/29/2012 9:45:09 AM
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@prabhakar,

When we have a look at the huge profits Apple and Google are making with their "made outstide the USA", products, I have the feeling that they can still manufacture in the USA and get reasonable profit margins, don't you think?

SteveCummins
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Stock Keeper
Good PR Move - But A Good Sign for Local Manufacturing Too
SteveCummins   6/29/2012 9:44:58 AM
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First and foremost, it's a great PR move for Google. At a time when people are no longer taking their "Don't be Evil" motto seriously, this gives the company a nice halo effect for a while.

But Google is also a smart company, and they would not be doing this if financially it was a big loser.

There's been a noticeable shift over the last year or two towards "reshoring" (including Mexico) for a number of reasons, including a more even total cost comparison vs China. For a high profile company to make such a move, it sends a messge that the shift is real. Hopefully it will make it politically easier within the boardroom for other companies to make a similar move.

Hospice_Houngbo
User Rank
Supply Network Guru
Re: neat trick
Hospice_Houngbo   6/29/2012 9:39:46 AM
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@SF'

"Apple consumers will always remain Apple consumers, and that will not change.",

What makes you say that? Apple's dominance in the smartphone and tablet market started just a few years ago mostly due its revolutioanry products, but things can change very fast. The next revolutionary device may not be an Apple product.

Hospice_Houngbo
User Rank
Supply Network Guru
Re: neat trick
Hospice_Houngbo   6/29/2012 9:33:59 AM
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Hi SF,

"For now, the only product marked as Designed and Manufactured in the U.S.A. is the Nexus Q."

It might be too early to conclude that many other manufacturing companies will follow Google's example, so soon. But it is a good start, isnt it?

Susan Fourtané
User Rank
Blogger
Re: neat trick
Susan Fourtané   6/29/2012 8:33:13 AM
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Hi, syedzunair

The New York Times reports:

"Harold L. Sirkin, a managing director at Boston Consulting Group, said, "At 58 cents an hour, bringing manufacturing back was impossible, but at $3 to $6 an hour, where wages are today in coastal China, all of a sudden the equation changes."The firm reported in April that one-third of American companies with revenue greater than $1 billion were either planning or considering to move manufacturing back to the United States. Boston Consulting predicted that the reversal could bring two million to three million jobs back to this country." 

So, if the labor cost has changed in China, it seems more likely that Google might keep the manufacturing prices in line, instead of trying to equal those of Apple. 

Apple consumers will always remain Apple consumers, and that will not change. An Apple consumer will not buy a Google tablet. If Google wants to reach those who will buy a tablet in the follow months the price of the products, if manufactured in the U.S.A., has to be something lower than the iPad.

For now, the only product marked as Designed and Manufactured in the U.S.A. is the Nexus Q. So we might want to focus only on this one for now. I haven't seen the price of the Nexus Q, have you?

-Susan  

Eldredge
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Supply Network Guru
re:Board room
Eldredge   6/29/2012 7:40:10 AM
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@prabhakar - you are absolutely correct. I hope the board room takes into account all of the costs for a fair comparison.

prabhakar_deosthali
User Rank
Supply Network Guru
re:
prabhakar_deosthali   6/29/2012 7:19:30 AM
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The real test of whether Google is successful with its Made in America strategy will be in the board room. If Google is able to convince its investors that American manufacturing is as profitable as in off-shore countries then definitely this will turn a new leaf in American manufacturing

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