Tuesday, April 24, 2012

Apple: why doesn't it employ more US workers?

I was attracted to an article with title above in the Guardian today, the info is eye-opening to me, if not shocking. I'd think it will be the same to you.
For your conveniences sake, let me summarise the points here:
1. Back in 2011, Barack Obama asked Steve Jobs why Apple products could not be made in the US. The most admired man in Silicon Valley was reportedly blunt: "Those jobs aren't coming back."
2. The wildly popular 4G iPhone assembled in China, the total cost of putting together just one phone was $178.45. Compare that with a sale price (including downloads) of $630 and Apple makes $452 on each phone: a whacking gross margin of 72%.
3. Chinese labour accounts for a tiny proportion of the company's costs: $7.10 for each phone. So what would it cost to make the same iPhone in
America? The average wage in the US electronics industry of $21 per hour and calculated that the total production cost would increase to $337.01. That is a big jump – but it still leaves Apple with a gross margin of 46.5% on each iPhone – a level that Apple probably still make it the most profitable phone in the world.
In the case of Apple, outsourcing manufacturing is not about keeping costs to customers down – they are still paying huge prices for the latest handset or tablet computer. Nor is it about the company's survival: it would still do tremendously well were it to bring those factories back home.

So, why do you think Apple doesn't want to do iPhone in her country?
Answer: In the case of Apple, moving jobs offshore has become a way of directing ever more money to those at the top of American society.
Above conclusion is not from one or 2 parties, it is backed up by the Asian Development Bank. In a 2010 study of an earlier model of the iPhone, ADB researchers concluded: "It is the profit maximisation behaviour of Apple rather than competition that pushes Apple to have all iPhones assembled in the PRC."
Proof? Tim Cook, who is now CEO of Apple, announced a few weeks ago that he would begin buying back shares and paying dividends to investors. Among other people who benefited from this arrangement was Cook himself, who was awarded $376.3m in Apple stock when he took over last year. That pile of shares is now valued at around $634m!!!
The article also said this: For all the stylishness and sleekness of its products, the Apple business model is an unattractive and, over the long term, possibly an unsustainable one.
Apple's stock price dropped 10 percent last friday to US$573 from the all-time high of US$644 reached earlier in the month because of fears on its weaker sales for Qtr 2, to be announced on this Wednesday!
So, will Apple rot soon?
LohZhong used to be involved in couple of products/production transfer projects from Germany to China back in 2007-09. For his previous co, it was necessary for the transfer but then the company didn't make stellar earnings still! Could it be Mgmt's fault? He firmly believes so...

Wednesday, April 18, 2012

You know who he is?

"At the age of seven, a young boy and his family were forced out of their home. The boy had to work to support his family. At the age of nine, his mother passed away. When he grew up, the young man was keen to go to law school, but had no education.
At 22, he lost his job as a store clerk. At 23, he ran for state legislature and lost. The same year, he went into business. It failed, leaving him with a debt that took him 17 years to repay. At 27, he had a nervous breakdown.
Two years later, he tried for the post of speaker in his state legislature. He lost. At 31, he was defeated in his attempt to become an elector. By 35, he had been defeated twice while running for Congress. Finally, he did manage to secure a brief term in Congress, but at 39 he lost his re-election bid.
At 41, his four-year-old son died. At 42, he was rejected as a prospective land officer. At 45, he ran for the Senate and lost. Two years later, he lost the vice presidential nomination. At 49, he ran for Senate and lost again.
At 51, he was elected the President of the United States of America.
The man in question: Abraham Lincoln





No one likes to encounter failure and we often taught not to give up easily! Question is how many times of failure is considered the end for pursuing an interests?

Any advice?

LohZhong has been buying lottery for past 10 years, never one time he ever hit the jackport! So give up or not?

Tuesday, April 17, 2012

Talkkok.com is moving!

After 3 years of being hosted by private hosting co and seeing the pathetic earnings i have from nuffnang, i come to a conclusion on private blog hosting: 算了吧! (it means forget about it in English).

So, i decided to move talkkok.com officially to lohzhong.blogspot.com effective today. It is also sad to inform you guys that the domain talkkok.com will be expiring soon in anohter 30 over days as I wont be paying for the domain anymore!

So, if you got nothing better to do during your free time, just stop by and see what i have to say. Taking a cue from the famous (http://malaysiafinance.blogspot.com), i might adopt some elements of similarity (using non-post related photos) in my posts down the road on lohzhong.blogspot.com!

Yeah, why lohzhong? I learnt that in China people address VIP often as zhong (总) after their surnmae as a way of respect rather Mr. When i paired it with my surname: 羅总, it sounds overwhelming to me! So that gives the talkok.com blog a reborn : LohZhong.blogspot.com!

So, pls get used to this new name!

Last but not least, millions thanks to those who have clicked on the ads on talkkok.com! Kindly continue doing so on lohzhong.blogspot.com yeah!

Yours truly,
Lohzhong (formerly known as Talkkok)

LohZhong is fedup with ipad which can't allow him to update photo in this blog, any idea how to do it?