From: "Spehro Pefhany"
Subject: Re: Examples Of Common MCU's In Consumer Electronics?
References: <email@example.com> <3D7F8BFF.5CC55B23@xympatico.ca>
User-Agent: tin/pre-1.4-19990216 ("Styrofoam") (UNIX) (Linux/2.2.14 (i586))
Date: Wed, 11 Sep 2002 19:17:00 GMT
NNTP-Posting-Date: Wed, 11 Sep 2002 15:17:00 EDT
In sci.electronics.design Joseph Legris wrote:
> I don't think so. There are many very rich Chinese and Taiwanese who got
> that way by owning factories, not by working in them.
> If a Chinese factory pays US$100/week for a 60 hour week for
> semi-skilled assembly work, a $3 product might have 50 cents worth of
> labour. The 7% gross margin of 20 cents looks pretty good if there is an
> order for 100,000 units, which is just 3 days production in a factory
> with 1000 workers. Potential yearly gross profit: US$2 million.
I don't think margins are that much different in Asia compared to similar
volumes of consumer products in North America. If you think they are
working for nothing, you're probably grossly misinformed on their costs.
Where's this $100/week coming from, for example? Besides, their quality is
relatively low, they probably waste 7% of raw materials overall. Dealing
only in full container loads of stuff does add to the efficiency though.
"it's the network..." "The Journey is the reward"
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