Why a lot of watches designed in Switzerland but assembled in China?

[upland]

http://www.tuaw.com/2012/01/22/why-apples-products-are-designed-in-california-but-assembled/

[miagi]

its all about keeping cost at minimum.

[pizzanooo]

It`s about profit mofo...

[ademarco]

Apple is sitting on $100 billion in cash so I think it is simple. Pay someone $17 a day or pay someone $7 an hour with benefits in the U.S. I would rather pay $17 a day to get the job done. Plus labor laws in U.S. would make the company pay overtime for anything worked over 40 hours per week. All of the government regulations make it difficult for companies to find the value proposition in keeping jobs in the U.S. We are a slowing economy and U.S. companies are looking abroad for growth opportunities and investments. Imagine getting all the Chinese consumers to pay with a credit card and hitting them with fees.

[tabularasa415]

Wow... Gonna go out on a limb and assume you're slightly republican?

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[txcollector]

All of the government regulations make it difficult for companies to find the value proposition in keeping jobs in the U.S. We are a slowing economy and U.S. companies are looking abroad for growth opportunities and investments.

I'm not sure if everybody posting here have actually read the article (specially the NY Times investigation) or actually know the facts. Although cost of production is a big deal for profits, the main issue for Apple is the fact they can't find the skilled labor they needed in the US. That has absolutely NOTHING to do with government regulations, wages or benefits.

"One could argue that Apple's success has come at the expense of the American manufacturing workforce, but if the New York Times' report is anything to go by, it seems the workforce Apple would have needed in America never existed to begin with."

A similar issue is happening with the farmers in the south. All those stupid racist state laws created to scare illegals immigrants (which in the farm areas are mainly seasonal) have driven the skilled force away and now produce is rotten on the fields because the average skilled Mexican picker can work 25x faster than the Americans trying to do the same job.

[opti]

Wow what a load of BS. That part that really made me laugh was that making the iphone in the US would only cost $40 more. Complete rubbish, its all about profit please dont fall for this Apple apologist article.

[Watchmeister]

Actually China can't find the skilled labor in any one place either. The difference is that people are willing to move temporarily to work and companies are willing to provide housing as they can afford to given what the wages are. China is not the first nor is it the last to have this advantage over more developed countries. Give it time and their cost of production will rise and another LDC will step in at a lower wage rate and the dynamics to force people to move to work. At current wagre rates China can afford to throw people at production. As those costs rise they will be forced to upgrade the capital element and reduce the wage portion.

[Logan]

A big reason to manufacture anything in a particular area is the surrounding businesses that compliment yours.. Apple produces close to where their parts makers are, F1 teams are mostly based in the UK. Watches get made in either Switzerland of Guanzhou, China etc.. you want a set of hands and dial made in a hurry? Try doing that any place else.

iPhones and pretty much every other bit of electronic gadgetry get made in China because thats about the only place that has the support you need to do so.. and the labour is cheaper too.

[Watchmeister]

And the funny thing about Switzerland and watches is that other than a few designers and watchsmiths everyone else are "guest workers". But at the price of the watches the industry can afford to pay what is necessary to get the guest workers to temporarily move as well. Is Switzerland really different than China?