Don't be fooled here. Yes, the article is interesting and totally right on, but I think that ultimately you are correct and it is that simple: It is cheaper! Increasing shareholder profits is still the primary mandate for corporations. Sure, it's more convenient when supply chains are closer in proximity, but imo, that's a serendipitous or even just an inevitable reality that's been created because of one factor: regulations in China are across the board looser than in the U.S. I'm thinking primarily about environmental and human rights conditions here. One thing that sticks with me the most about the Foxconn stories - and this ties into the "you need a different screw? wait three hours" thing - is that ultimately, the workers create the flexibility. When Apple execs decided to change the screeen last minute, factories in China opened at midnight and went online to begin the change over. Can you imagine getting a call from your boss saying "things have changed. we need you to come in right now and work through the night."? Now mulitply that by 5000 people. I just don't see that happening in the U.S.

Also, I used the word serendipitous before because I think, too, that the timing for increased offshoring, consumer electronic demands, and China's population growth have synchronized quite nicely in the last 30 years and more than likely even stimulated eachother. If you look at the population growth in Shenzen, China's first SEZ, it just seems like the perfect storm for Camp Apple to be born.

I mean, it would really be an interesting scenario if when you went to the store to buy the new iPad and they pulled out two equal products - one made in China and one for $80 more made in the U.S. which one people would choose. Hell, Apple wouldn't even need to charge that if you consider their profit margin on the new iPad. When I look at profit margins like that, I just think it's absolute bullshit when I read that Apple CAN'T build iPads in the U.S. Nope, all that really means is that shareholder rapaciousness WON'T ALLOW Apple to build iPads in the U.S.

Off-shoring has debased the U.S. and these articles scare me because they point out how re-settling manufacturing systems is like trying to turn an ocean liner 180°. More importantly, I think major symptoms which aren't directly apparent is the negative impact manufacturing loss has on American culture, confidence, and therefore its livelihood. The defining moment in the creation of the American middle class was Henry Ford's Five dollar work day. They called that "welfare capitalism" btw, and he was considered a hero because of it. For the life of me I cannot understand why the heads of so many corporations do not have the foresight to invest in the American economy and take stewardship of a really great country.