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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: 8bits who wrote (6030)	7/5/2006 11:27:51 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

>>They are profitable yet privately owned. (And don't have Nike town..) Average wages are $12 an hour, which in small town American is tolerable.<< Yes, they are profitable alright, but their profit is nothing comparing with Nike and Reebok, which using the cheap labor in Asia. The cost of Nike and Reebok produced in Asia (not just China, they have plenty of assembly line in Indonesia and Vietnam too, where the salary is 25%-30% lower than China!) is somewhere bet. $5-$10/pair, and they sell for $100-$200/pair! And in case of of iPod, their profit margin is 30%. And there is simply NO way that Steve Jobs can make that kind of profit margin by making them here in the US. It is just that simple!