Monday, Jun 07, 2010
Roll on inflation on iphones, ipods etc
Yahoo: Foxconn 'suicide factory' raises pay 70pc
Demographic expert say Chinas vast pool of labour which has allowed it to grow at double-digit rates over the past two decades, with low-inflation, is starting to dry up, and will start to contract from 2015 as the working-age population feels the impact of the one-child policy.
The [Foxconn] pay raise will put pressure on other companies that are currently cashing in on the cheap labour of China. The era of cheap Chinese labour is over
Posted by mark @ 03:20 PM (762 views) Add Comment
11 Comments
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1. Little Professor said...
The average salary will rise from £90 per month to £200 per month.
Average price of a single 64GB iPad: £699
I doubt this pay rise is going to lead to significant inflation in iPods/iPads/iPhones. They already have a ridiculously high profit margin because iTards are prepared to pay out huge premiums for being able to have the latest shiny Apple gadget, regardless of the fact they can get a higher spec for much cheaper without the Apple label. They can easily afford to absorb this tiny wage rise and still make a massive profit per device.
2. little professor said...
The average salary will rise from £90 per month to £200 per month.
Average price of a single 64GB iPad: £699
I doubt this pay rise is going to lead to significant inflation in iPods/iPads/iPhones. They already have a ridiculously high profit margin because iTards are prepared to pay out huge premiums for being able to have the latest shiny Apple gadget, regardless of the fact they can get a higher spec for much cheaper without the Apple label. They can easily afford to absorb this tiny wage rise and still make a massive profit per device.
3. inbreda said...
"iTards"
love it.
4. Funkydung said...
So with this logic, if a few of the British Airways staff jump off Beachy Head they may have some chance of getting what they want.
5. drewster said...
It's the thin end of the wedge, LP. Wages in China have been artificially suppressed by a number of mechanisms; not least of which is the willingness of young rural Chinese to migrate to the cities and work 80-hour weeks in the hope of saving up enough to settle down back home (sound familiar?). This is a one-time industrialisation boom though - with the added complication of China's demographics. Once the cheap workers are gone, they're gone.
6. alan said...
LP - sounds like wage inflation to me....
Gold is now over $1240 (spot).
Looks like those inflationary tendencies have been spotted already!
7. the number cruncher said...
LP @ 1 Thoroughly agree - I am going to use you iTards word to ridicule the ones in my office tomorrow. Thank you!
8. enuii said...
Give me a pay rise now or I'll slash me wrists with me iTard!
9. Fubar said...
And so a legend is born. Looking forward to the spread into the mainstream of iTard.
10. fubar said...
And so a legend is born. Looking forward to the spread of the iTards meme.
11. holyroller said...
Of course the use of iTard could be seen as childish and offensive way of using the word retard. It may be just a joke to you, but for people who have to deal with this kind of crap day in and day out its becoming pretty f'king annoying.
And anyway why use words that describe a disability as an insult to someone?? There are soo many insults that can be used in its place, yet people often choose this one.
On a positive note, my son who has severe learning and physical disabilities, loves the iPhone. It is so much easier for him to use than a regular computer/phone, the touch screen is great for him.
A massive increase in wages in china, will have a fairly large impact on companies who import items such as premade plastic components and such. I looked into producing a product a while back. Initially the cost was around £2 per unit, with a weaker pound this has increased to nearer £4 a unit, if wages went up the price would likely increase to nearer £6-7 per unit. When you are buying 1000+ units its a huge increase. Of course it will give local companies an opportunity to compete on a more level playing field.