Ah, but labor costs are just one of many production costs. And there's also the fact that Japan's central bank has virtually eliminated inflation -- the Yen's purchasing power has been stable for years.
This provides a good environment in which to do business and allows consumers to benefit from dropping prices due to productivity improvements.
The conventional wisdom these days is that Japan is in a long, slow decline. The conventional wisdom is wrong. Their GDP may be stagnant, but GDP growth is dependent on an inflating currency.
The Japanese aren't stupid. They continue to produce more goods with fewer people. Capital continues to be invested, living standards are rising and their export machine just keeps cranking.
Don't believe the Keynesian-trained ignoramuses who pontificate about Japan's lost-decades. They don't have a clue what they're talking about.
Japanese consumers enjoy the ability to purchase more each year for the same amount of Yen. This is supposedly a bad thing; I can't, for the life of me, see why.
Good maybe HP quality will go up. I know the last two notebooks I bought from them were junk...
Amazing, isn’t it? Only two months ago, FR’s doomsday chorus all but predicted the end for Japan. Luckily, Japan was having none of it, and got to work instead of wringing their hands and posting pictures of “black swans” and crying “the end is nigh!”
You are correct and people are starting to see that China can’t keep the quality aspect up. Consumers choose not only on price but on quality.
China still means cheap build quality
Japan means excellent build quality
HP should bring home the bacon
USA non-union shop means excellent build quality also, and lower shipping costs for US Customers. Since they are in HOUSTON, they could have build right in their back yard and done very well with Tax and quality.
why don’t they move it to some rural u.s. location?
The “Made in Japan” label is very powerful here. In some cases, people are willing to pay up to twice to get a Japanese-made product.
While part of the reason is superior workmanship, another reason is simple patriotism and a feeling that Japan has been abused by China in resent years.
My Touchsmart 300 was “ assembled “ in Tokyo , but virtually all the parts were made in China as far as I know . Lots of trouble with it during the first year : had to send it back for repair 3 times ( they would NOT replace it despite major hardware defects ) . I don’t care where they make their computers ; I’d never buy another HP . And I live in Japan !
But will they be radioactive?
As someone who translates the internal business reports of various Japanese firms, China is not as great of an investment as people think. My clients are leaving China for Thailand or leaving to central China.
Productivity of all but the most basic materials is low, wages are rising dramatically on the coast though production is mediocre, while the wages of central China are low and productivity is abysmal.
Japanese workers do not work as proxy slaves as the Chinese do. Add to the fact that China is becoming more and more unstable. Korea and Japan are expensive places to put plants, but productivity is way better.
Great news!! Hope this trend to move away from China-made junk continues!
China, Japan, and the UK: the United States’ greatest three debt holders, correct?
Isn’t HP now Lenovo...the Chinese company that bought them out?
They bought the PC division of IBM.