JJZolx;208490 Wrote: 
> Interesting.  If that's the case, I would have expected a fairly
> substantial price decrease.  Assembly and testing costs must now be a
> small fraction of what they once were.  I would guess that the housing
> components and the packaging were formerly produced in the US, so they
> should also be much less expensive.

I personally, would not expect that. Why would costs go down fairly
substantially? Ok - this subject hits me in a sore spot and puts me on
edge. 

Is your North Face jacket a knockoff? Just wondering.

Having had ten years of experience helping to manage a factory here in
Silicon Valley which began as a startup in a garage, and dealing with
occasional manufacturing done for my company overseas - I have pretty
strong opinions about this sort of thing.

If you know what your are doing, it is not a given that it will be
automatically cheaper to have someone else do it.

I suppose Logitech has a lot of experience with this sort of game, and
has very solid and trustworthy relationships but otherwise issues such
as QA, substitutions for cheaper parts and pocketing the difference,
having overseas factories make knockoffs after completing valid orders,
etc. can become quite serious.

I have had some interesting conversations with my counterparts at other
companies, which indicate that the party is over. To be nasty: C-level
people often want to contract out the hard work, and go play golf. 

Manufacturing overseas can cost you money, it is not the panacea for
cost-cutting the general public imagines it to always be.

-Ron


-- 
Ron F.

*Squeezebox setup:* wireless SB3 -> CI Audio VDA.2 DAC + VAC.1 PSU
*Main rig:* NAD 7600 + NAD 2600A -> Phase Tech PC-6.5 speakers
*Headphone rig:* Headroom Max -> Sennheiser 650s
*Music Server:* Nano-ITX computer running SlimCD + 750 GByte HDD ->
Netgear wireless router
*Other stuff:* NAD C542 CDP, NAD 6300 Tape, Monster 5100 Power
conditioner, Outlaw Audio cables
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