What Will AAPL's Profit Margins Be? Just Ask Foxconn... And Discover A Stunning Development In China-US Wage Parity

Labor Arbitrage has been more of a case of supply sider of oligarchs to maximize profits, rather than an inevitable effect of the market process.

From Zero Hedge:

In just over an hour Apple will report earnings which are expected to be a sole silver lining among the otherwise dreary retail landscape of the fourth quarter. However, those curious for an advance glimpse of what AAPL's margins may be are advised to look no further than its chief supplier - Taiwanese mega contract manufacturer FoxConn, with over 1.2 million employees on the mainland. The reason Foxconn may be of interest is that as Reuters reports, as a result of soaring wages on the mainland, and in its ongoing strategy to keep worker compensation as razor thin as possible, the fabricator is now actively looking to expand outside of China. Among the places considered? Indonesia of course. And, drumroll, the United States! In other words, from the perspective of Foxconn, US labor now has greater wage competitiveness than China.



http://www.zerohedge.com/news/2014-01-27/what-will-aapls-profit-margins-be-just-ask-foxconn-and-discover-stunning-development