[quote=no_such_reality][quote=flu]
if we don’t have any other advantage versus some “cheap player”… [/quote]
How do you develop advantages when you strip mine your own industry and send it elsewhere?
[/quote]
Easy, follow how Qualcomm wins in China again all the super low cost players that can offer very similar competitive offerings. Well until Apple tried to screw that up with this FTC lawsuit…..
And then contrast that with other players like Broadcom, Marvel, and to a lesser extent MediaTek who all try to compete on cost. Hint: most of them are no longer in that business anymore.
Now, if you make the argument that Qualcomm’s patent royalty gravy train isn’t really core business and providing jobs for say those that are making the modems/chips. I disagree. We all know that in the real world, when you have a large company, about 20-25% of the employees and company ends up generating the cash cow for the remaining 75-80% of the employees/jobs at the company. Same could be said for any other company.
Or for auto industry, build a premium product so that you can charge a fat margin on, so that you can afford the higher cost labor, with presumably higher workmanship…. I guess that’s how BMW gets away with running factories in the U.S….
Or… Move your factories to a state that has “right-to-work” laws and have very low minimum wages…..
Or don’t build low cost cars like ford focus/ford fiesta if they don’t pencil out….As they currently don’t in the U.S.
You think if GM builds a Buick in Detroit and ships it back to China, it can hold its marketshare there?
