The Google Nexus Q, the streaming media player from Google which was revealed yesterday, can take credit for something which most other devices cannot. The “”Designed and Manufactured in the U.S.A.” tag at the back of the device. Apple, which manufactures all its products exclusively in China has received negative comments from some quarters of the media and government, earlier.
There used to a time when many major U.S. manufacturers assembled or built their products in the U.S. For that matter, Apple it self at one time used to get it’s Macs assemble in California. Even Steve Jobs’ NeXT computers manufactured it’s computers in California.
Other major U.S. tech companies which had their plants in U.S. where Compaq and IBM. In the 1990s, both these PC manufacturers had PC assembly complexes in Houston and North Carolina, respectively. In fact, even the motherboards for Compaq was made in the U.S.
Over the next year, increased labor cost in the USA and the simultaneous emergence of Asian markets where labor cost was dirt cheap compared to the USA, led to the shift in manufacturing and assembly units being shifted outside the USA to Asia, and mainly China.
There is however a downside to Google’s decision of making it’s Nexus Q device in the U.S. The Nexus Q is an expensive device at a price point of $299. You could purchase three Apple TV units for that price. Agreed, that Nexus Q is a different kind of device and offers more features than the Apple TV, but that still does not justify the price of $300.
Google has, however, said that prices will come down as production volume increases. But by how much, we will have to wait and see.
Do you think Google’s decision to manufacture a device at home will bring about a tide of change in the tech industry. Your comments