I know nothing about European, Eastern, or Asian business. If a company there paid me 5 billion USD (soon to be worth slightly more than 5 toilet paper squares) to build a critical system - you know, like Boeing built the avionics for the MAX for 1/12th a toilet paper square an hour in Everett, WA - who in their right mind would think I'd deliver a quality product? So what company can think the same? What Investor?
Any company that outsources work is doomed to fail, both fiscally and commercially. When has that not been the case?
I know nothing about European, Eastern, or Asian business. If a company there paid me 5 billion USD (soon to be worth slightly more than 5 toilet paper squares) to build a critical system - you know, like Boeing built the avionics for the MAX for 1/12th a toilet paper square an hour in Everett, WA - who in their right mind would think I'd deliver a quality product? So what company can think the same? What Investor?
Any company that outsources work is doomed to fail, both fiscally and commercially. When has that not been the case?
umm many of the biggest American companies outsource work to China, India, Vietnam, Taiwan, etc.. just look at Apple's massive factories all over Asia. They work because the workers are paid about 1/15th of what they'd be paid here. Slave labor is fucked up but very effective. That's how you get pyramids, our railroads, panama canal, etc...
And ... there went another 737 MAX. There crashes another Lenova Lap ...
Edit: top.
Yea but that's insignificant compared to how much money is saved. Most massive tech companies couldn't survive in the U.S. because of labor costs. Hell we're even heavily reliant on our prison population for our own slave labor. They manufacture a shitton of "American Made" goods.
Money "saved" is a short term gain. They don't save anything in the long run. Who here claims their Made in China crap is better than our 1970s rust-prone-steel made in America ...
Oh, anyway, who thinks their Made-in-China crap is better than Made-in-America crap?
What? Most American businesses past a certain size could literally not survive being purely American made. The reason they get so big and have stayed so relevant is because we outsource. It's the same thing with undocumented workers from Mexico. Sure we don't want illegals here but we also don't have the manpower to replace the farm work they do.
You may have (or intentionally) missed my acknowledgement that same sourced manufacturing is not without it's faults, but my original point stands: who can pretend to be surprised when it doesn't meet expectation?
Outsourcing keeps headcount down and costs down. More money means more dividends. Cutting costs means higher stock price.
Ever experienced the hellscape of Comcast "customer support", which is a website that doesn't work, a phone system that intentionally keeps you from speaking to a human being (unless it's billing, they pick right up), and everything eventually ends with some Indian in Mumbai who can't speak English and is reading poorly from a script?
Yet Comcast is raking in money and their stock price is fine, stable, and a "buy".
It doesn't mean it's right. Or that it's good customer service. Or that the product is any better.
It doesn't matter. Look up "monopoly". Once they control the market none of it matters.
I should have put surprised in quotes. I personally am not surprised, I've known this for many decades. It's that the news prints it as a "surprise". No body is fooled by it.
They just haven't realized it yet. They will.
It's always been like that.
I used to work for a green energy/solar company and we engineered the hardware in Silicon Valley, but had the hardware fabricated in China. Then, like 7 months later, the board was flabbergasted that all of a sudden, clones of our product was rebranded and sold by the Chinese for lower prices. They just couldn't understand that the Chinese would take the schematics and firmware and rebrand the case while undercutting the product we sent them to make.
It's like .. no shit stupid. That's what they do. They STEAL American IP's. They are thieves and it's government sponsored.
That's my point. Why are they surprised? Or, rather, they act surprised, and the media claims they are surprised, but both we, the consumer, and they, the business owner, and the other they, the outsourced manufacturer, know better - they paid shit to produce shit, and everybody knew it.
I agree. CEOs who are put in that position and who have no idea what they're doing, and all they're good at is BSing investors. I'm actually living it IRL.