Monday, June 21, 2010

iPod Touch as an example

I have been wondering about something lately. I own an iPod Touch, which by the way is a terrific device. It is made in China, engineered however in the good old USA. From what I can tell, this device appears to be assembled via robotics. What I don't understand is this. What is the financial benefit of assembling a device in China, especially when the device is made without the benefit of manual labor? I mean, the lead times are longer due to shipping and US Customs. There are the packaging costs and repackaging costs and distribution and domestic shipping costs. As for an import tariff, I cannot find one listed for an iPod or Computer or Cellphone imported into the USA. If this is so, why is it so? If anyone can show me what the tariff is, I would be grateful. I just don't get it. There is something missing here. Some loophole that allows a company to ship manufacturing jobs overseas and make a larger profit otherwise must exist. The numbers just don't make any sense if you look at the actual costs to manufacture this product. Believe it or not, Dickies aren't even made in the USA, yet you pay for the name. Can you believe that Hanes cannot manufacture a t-shirt in the USA for a low price? Of course they can, so why not? Even if the cost to produce were say $.25 more per t-shirt, I would gladly pay an extra $.50 per shirt to buy American, would'nt you?

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