RE: [newtech-1] Apple - Made in the USA

From: Calvin C.
Sent on: Monday, December 10, 2012 12:04 PM

The items that are typically being shunted back to this hemisphere are usually large and heavy goods.  The calculation has to do with how many can fit into a cargo container (http://en.wikipedia.org/wiki/Intermodal_container) versus freight cost / slots.  So I can see Tim Cook’s signature all over Apple’s shift to the tiniest possible packaging that is shaped to allow an exact integer number of them to fit into one of these containers with no wasted space.  And this is what you guys see when you get an iPhone 5 for instance—why is the box *that* size?  The other Apple products (monitors, desktop machines, etc) are problematic because unless the margins are high enough that they make an equivalent or better amount of profit versus the tinier products then as the cost of fuel ratchets up it becomes unattractive to manufacture in Asia—especially since the cost of labor is at parity and expected to be worse in the coming years.   So Apple will have particular trouble with products like the Mac Pro and 30” Cinema Display, etc, because if they did really well, then they’ll have to use up valuable transport slots to get them over here, or, they have to price them high enough so it balances the demand.  (e.g., make them very expensive, less people want them, less units need to be made, more slots available to shoot iPhones and iPods over the ocean). 

 

(you’ll see this effect in the recent shift of large screen LCD manufacturing to Baja California, etc). 

 

So this becomes a sort of spreadsheet optimization problem.  J  So perhaps Apple knows the price elasticity curve  for certain products, and if the items are made locally they can manipulate the curve to goose the units sold or jack up the margins or whatever.   Anyway, I have guesses J.

 

Cheers,

 

______________

Calvin Chu

Senior Technology Licensing Officer, Columbia Technology Ventures

[address removed]

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@cchu (twitter)

techventures.columbia.edu

 

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From: [address removed] [mailto:[address removed]] On Behalf Of Miles Rose
Sent: Monday, December 10,[masked]:18 AM
To: [address removed]
Subject: Re: [newtech-1] Apple - Made in the USA

 

Any guesses as to which product they will manufacture in the USA?

 

Existing product?

 

New product?

 

Big product?

 

Small product?

 

 

 


On Dec 10, 2012, at 9:19 AM, ed potter <[address removed]> wrote:

Very few humans will be needed. If at all. The robots won out awhile ago. At this point it's as cheap to assemble in Indiana as it is in China. There is no dollar difference anymore. Welcome to World 2.0.



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twitter: twitter.com/ejpusa
iPhone portfolio: http://www.preceptress.com




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