How much more would computers cost if they were manufactured entirely in developed countries?
May 20, 2010 10:49 AM Subscribe
How much more would computers cost if they were manufactured entirely in developed countries?
In light of the recent Foxconn scandal, I'm curious how much computer manufacturers save by using labor in China and other developing countries versus labor in developed countries.
I could figure this out if I knew the percent of the cost of electronics that goes to labor in developing countries. For example, if I knew that a $1000 laptop required $50 of labor in China, and an average Chinese worker makes 1/10th as much as a US worker, I could calculate that the laptop would cost $1450 if made in the US, or 45% more. But I don't know where to get those numbers.
If I could find one system or component that was manufactured both in a developed country and in a developing country, I could use that to get a general idea of the size of the difference. But I haven't been able to find one.
I'm only looking for an approximate number -- I know an exact answer is impossible. Educated guesses from folks who know about hardware manufacturing are definitely welcome!
Fine print:
For the purposes of this question, Taiwan definitely counts as a developed country. Older numbers from around the time manufacturing moved from Taiwan to China would be very useful.
Obviously some of the cost of electronics goes to labor in developed countries, and I don't care about that part. I also don't care that labor might be more productive in a developed country due to more educated workers or better technology. I just want an estimate!
In light of the recent Foxconn scandal, I'm curious how much computer manufacturers save by using labor in China and other developing countries versus labor in developed countries.
I could figure this out if I knew the percent of the cost of electronics that goes to labor in developing countries. For example, if I knew that a $1000 laptop required $50 of labor in China, and an average Chinese worker makes 1/10th as much as a US worker, I could calculate that the laptop would cost $1450 if made in the US, or 45% more. But I don't know where to get those numbers.
If I could find one system or component that was manufactured both in a developed country and in a developing country, I could use that to get a general idea of the size of the difference. But I haven't been able to find one.
I'm only looking for an approximate number -- I know an exact answer is impossible. Educated guesses from folks who know about hardware manufacturing are definitely welcome!
Fine print:
For the purposes of this question, Taiwan definitely counts as a developed country. Older numbers from around the time manufacturing moved from Taiwan to China would be very useful.
Obviously some of the cost of electronics goes to labor in developed countries, and I don't care about that part. I also don't care that labor might be more productive in a developed country due to more educated workers or better technology. I just want an estimate!
One thing to consider is that every developed country has its own tax structure and minimum wage. For instance, New York's is $7.15 while Denmark's is roughly equivalent to $20 an hour, but most of the latter goes to taxes.
posted by griphus at 11:02 AM on May 20, 2010
posted by griphus at 11:02 AM on May 20, 2010
Response by poster: I'd like to know what the price would be if all components were manufactured in developed countries. I realize it's a tall order!
It might help that a lot of components like CPUs, hard drives, and RAM chips are made mostly in developed countries and seem to be competitively priced.
posted by miyabo at 11:06 AM on May 20, 2010
It might help that a lot of components like CPUs, hard drives, and RAM chips are made mostly in developed countries and seem to be competitively priced.
posted by miyabo at 11:06 AM on May 20, 2010
I don't know the answer, but Micheal Dell started Dell by noticing he could have computer parts shipped to himself, put them together in his garage, and still make cheaper computers than were generally available.
posted by xammerboy at 11:19 AM on May 20, 2010
posted by xammerboy at 11:19 AM on May 20, 2010
Dell were made in Ireland for many years, they might still be making them there, I'm not sure
posted by fshgrl at 11:53 AM on May 20, 2010
posted by fshgrl at 11:53 AM on May 20, 2010
With expensive labor, there would be a good deal more automation, which might lead to different designs as well. So, it would probably be cheaper than simply assuming the use of the same process with the same number of people doing the same jobs. Good starting point, though.
posted by alexei at 12:22 PM on May 20, 2010
posted by alexei at 12:22 PM on May 20, 2010
This thread is closed to new comments.
posted by gagoumot at 10:55 AM on May 20, 2010