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The Power of Many; Consumeration
Article from Bulletin/Magazine
The Economist (http://search.proquest.com/) vol. 400 no. 8754 (Oct. 2011)
Economies of Scale
Perpustakaan Pusat (Semanggi)
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Lihat Detail Induk
Anyone wanting to get a better idea of the scale of the changes taking place in the world of consumer electronics should take a look at Foxconn's giant factory complex in Shenzhen, in southern China. Known as Foxconn City, it covers an entire square mile and is crammed with manufacturing operations and company-managed housing, medical facilities and educational centres. About 400,000 people work there, roughly as many as live in Oakland, California. Like several other Taiwanese firms that operate factories at home and in China, Foxconn churns out electronic devices on behalf of a number of Western companies. By tapping into cheap Asian labour, Apple, Samsung and other consumer-electronics giants have been able to drive down the prices of their phones and other gadgets, broadening their appeal to consumers. A handful of insurgent Asian firms, including China's Huawei and Taiwan's HTC, which make devices that run on Google's Android mobile operating system, are using their cost advantage to build their own global brands. A globalised supply chain is not the only thing helping consumer-electronics companies to cut costs. They are also benefiting from economies of scale as the incomes of more and more people in more and more countries rise to the point at which gadgets are affordable.
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