Google On-shores Manufacturing of the Nexus Q
An anonymous reader sends this quote from the NY Times:
"Etched into the base of Google's new wireless home media player that was introduced on Wednesday is its most intriguing feature. On the underside of the Nexus Q is a simple inscription: Designed and Manufactured in the U.S.A. The Google executives and engineers who decided to build the player here are engaged in an experiment in American manufacturing. 'We've been absent for so long, we decided, "Why don't we try it and see what happens?" ... It has become accepted wisdom that consumer electronics products can no longer be made in the United States. During the last decade, abundant low-cost Chinese labor and looser environmental regulations have virtually erased what was once a vibrant American industry. ... At $299, the device costs significantly more than competing systems from companies like Apple and Roku. Google says this is in part because of the higher costs of manufacturing in the United States, but the company expects to bring the price down as it increases volume. The company is hoping that consumers will be willing to pay more, though it is unlikely that the “Made in America” lineage will be part of any marketing campaign.'"
"The company is hoping that consumers will be willing to pay more, though it is unlikely that the “Made in America” lineage will be part of any marketing campaign.'"
People excoriate execs and companies who move parts of their businesses offshore (often rightly, and also often without questioning the policies that contribute to it often being cheaper and easier to employ people thousands of miles away in other countries).
They (and especially the most indignant among them) should be happy to pay a little more to keep the work local; after all, they're demanding that others do it.
Not sure how that "experiment"in American manufacturing is going to work out, considering one of the major complaints is that it is over-priced compared to similar items - roku, apple tv, xbox/ps3. I know the amp adds cost, but manufacturing overseas can be done cheaply. That's why companies do it.
Quite a lot of the components inside the device are probably imported.
"low cost Chinese labor and looser environmental regulations"
Those aren't the only factors. The fact of the matter is that pretty much everything is clustered in SE Asia nowadays, and that the labor market is a lot more dynamic. Need slightly shorter screws? Call the factory down the street, they'll start arriving within the next hour. Changed the specs for your unibody case? The factory downtown will deliver new ones the same day. Need a new assembly plant? Build it and staff it by next week. Everything is done locally, reducing ETA and shipping costs in the process. These things also count tremendously.
"But where do all the parts come from?"....anyway, it's expensive as hell to make something here but there's some business value and even cost saving in the fact that they can get any manufactured phone to any place in America in 1 day with Fedex. Even the fastest but still economical shipping methods from Asia are 2-3 weeks lead time at least because it's all ship-based. Get your stuff held up at the port? Time to order another couple thousands then because you've got waiting customers. The other option is to just over-order and pay lots of money to ship and guard your expensive inventory state-side and then have to put them on clearance when the sales figures don't match up with their overblown estimate. Do you know how much Nintendo lost on Wii shortages? Do you know how much HP lost on excess tablets? So there's some value in making things in the US from a cost saving perspective.
Ah, finally an Apple user I like! One that makes Apple look bad.
I keep waiting for them to replace Chinese workers with American robots. If they did that it could actually cost less. You pay less shipping. Maybe we just don't have a robot that's good enough and cheap enough; but we will. A lot of the outsourced labor is things like cleaning, assembling, etc. Come on Google. If you can program 'bots to drive cars, surely you can program them to polish screens.
There should be a rule on Slashdot that no paywall links are allowed to be posted. How can we comment on an article that we cannot see?
Proverbs 21:19
No on here believes that BS. But at least for some American families this will be jobs and a bit of security.
That`s just distasteful.
Cause it's jobs for Americans , paid by selling goods to Americans and that America has traditionally made better products than the Chinese. .. but jobs and peopple who have money to spend on products built in America makes America grow stronger in the world arena.
Cheap is nice
Stop thinking it's nationalism and patriotism . Buy American goods to give jobs to Americans. Simple and just what America needs : jobs jobs jobs.
That I can't figure out what exactly I would use it for, if this thing was a full on Google TV, plus DVR (and maybe keep those social media things...though really that seems like something that should just be built into Google TV). Then sure I'd be fine with the cost and maybe even more! But this thing seems simply less capable than a product they already put out (Google TV) and costs more. I simply can't find a reason to buy...and frankly with the whole straight from Google and made in the US things I kind of want to want to buy it but I don't. Maybe I missed some aspect of its functionality or future but they didn't reveal anything like that from what I saw.
Check out the gibberish closed captions ("nexus ceo their first social streaming media player may trigger the plane home") for the How Nexus Q Works video.
Feel the sand of the beach between your toes and hear the sea while manufacturing, yay!
Because at the end of the day you will pay either way. Either pay more for your products and give your fellow citizens a reasonable living or pay more in taxes for their unemployment, food stamps and welfare and on top of that deal with the social ills such as higher crime rates that can come when someone has nothing to lose.
So, this is not a Google TV device yet can connect to a TV with limited functionality. Its too expensive as a standalone network media streamer compared to other products available. I don't need a network device to power its own speakers. Compare this to a $120 Apple TV or even a $190 Boxee Box and its a very over-priced and mediocre competitor. So what is the point?
Obviously if Google is using on-shore manufacturing they are already assuming this as a niche product and don't have to worry about huge demand and high production costs.
I think Google mucked this product up as they are positioning it as an expansive hipster device in a market already saturated with better value and feature rich products. All Google should have done is create a little HDMI dongle that sits on a TV/Receiver that provides AirPlay like connectivity for Android devices which are capable of providing all the same functionality as the Q and could do so for a small fraction of the cost.
I haven't thought of anything clever to put here, but then again most of you haven't either.
Don't forget that it is also manufactured in a country that still puts a little faith in Rule of Law: the workers aren't indentured servants and exposed to thousands of toxic chemicals with no right to know or MSDS disclosures, and that there are limits of chemical releases to the environment.
More Twoson than Cupertino
http://business-standard.com/india/news/made-inusa-is-back-as-google-doesretro/478854/
Looks like Business Standard Syndicates it from NY Times
Makes sense that they pull out of China, since the government was so apathetic regarding the hacking incidents, and Google have had a lot of negative rhetoric against China. They could get a "patriotic" boost in the huge US market if they did tout it in their marketing, but maybe they think it will reflect badly on their other products. They can also more easily ensure good conditions for the workers, less pollution, etc, and use that in marketing. US is probably less than 30 % (PNOOMA) of the world market for cheap tablets, and the others will care about "concience" and quality, not moving jobs to US. Quality is probably identical; the same component costs and tolerances go into the calculation. As labour is more expensive, more work will proabbly be automated, perhaps leading to more consistent quality. The environmental and worker quality of life benefits could have been achieved in China as well; probably not a driving force. So to sum it up; antagonism towards (and from) China, patriotism from Google itself & US customers, better oversight .
People might go along with the the "buy American" line for a while, but if they can save money by buying cheaper products with the same or more \better features they will soon turn to doing just that.
Well, that's the question, isn't it? Does an American company building the products it designs nearby have any advantages in quality control or innovation that offsets the slightly higher (China's edge here is often exaggerated) costs?
In an area where innovation is gradual and nobody has a chance of a killer technological lead, I think that cost is likely to be king. I have friends who went to work in the auto industry and were amazed to find that managers would sell their soul for a $1 saving on a $30,000 car. In areas with rapid and radical innovation, there might be an advantage. I don't think you can answer this question generically. It depends on the character of the market, industry and the company.
Apple is an interesting case. Apple didn't start by offshoring manufacturing, and even after they'd gone that route they hung on to their last domestic plant because they thought there was value to keeping designers close to the manufacturing process. And it worked. Even in the pre-Second Coming years when their product line was complicated and supply chain messy, they manufactured very high quality stuff. It'll be interesting to see what happens when that know-how fades with time. People will automatically attribute any decline in quality or innovation to Jobs' death, but if those things happen they may be the result of changes in corporate culture introduced by Jobs.
Offshoring iPods definitely was a winner because of their relatively low cost and high volume, and the need to compete against low cost alternatives. It seems to me that the same factors would apply to the Nexus Q, which is just another streaming media box. But maybe Google knows something we don't. Or maybe Google needs to gain more experience before it can rely on overseas contractors.
Bottom line on the question of on-shoring vs. off-shoring: it depends.
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You laugh that's exactly what the Italians have done. They imported labor so they could still put a "made in Italy" stamp on their stuff. So the next time you are fawning over some overpriced Italian brand, just remember that it was still made by the Chinese.
A Pirate and a Puritan look the same on a balance sheet.
I'm not quite sure about the "kill your own jobs" part, what I'm expecting more is that it will give unemployed Americans chance to get jobs.
And I will pay more too, as a self conscious act of affirming the long term importance of having a profitable manufacturing base in the US.
We all buy China junk, myself included. If I could buy all Made IN America at three times the price of Slave Labor in China, would I only buy Made in America? Probably not because, like solar panels, buying ONLY Made In America is a political statement I literally can't afford to make ALL the time as of right now. But will I buy what amounts to fun cool stuff like tablets and audio gadgets for 300 instead of 100? Oh hell yeah I will.
I wish it would, but I don't see how this will turn into anything exciting for the economy until offshoring gets more cost prohibitive. Thanks for trying Google.
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People excoriate execs and companies who move parts of their businesses offshore (often rightly, and also often without questioning the policies that contribute to it often being cheaper and easier to employ people thousands of miles away in other countries).
Its more consumer behavior than policies. People's preference for a lower price, people's indifference for where a product is made. Offshoring is *not* some law of nature that will inevitably arise. Offshoring is a result of consumer behavior, the willingness to trade "local" manufacture for a lower price. Some people like to say that corporations will always seek the lowest cost of production, however they are only stating the first part of the "rule" and leaving off the "all other things being equal" caveat. In truth corporations meet consumer demand. If consumers are indifferent to where production takes place then corporations will outsource. If consumers show a consideration to where something is manufactured then corporations will be less inclined to outsource. Outsourcing is just a tool. If it negatively affects sales it will be discarded by corporations.
Google is correct that it could be an interesting experiment. However now we are back to the "all other things being equal" caveat. The functionality has to be comparable. The price difference can not be too large. Otherwise the experiment is flawed.
right you can't require somebody to work 80+hour weeks to meet a deadline in the US
i have 2 words for you
Mr Teller could you get Mr Penn to explain those words??
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Well Apple keeps Jobs in American Soil, That has to count for something.
I get that. Funny.
To make room for this, could you unplug the DVD player and play DVDs on the media PC?
I don't mind paying a little more for something not made in China, but you're dead on about the features. It looks like it does one thing and no doubt does it very well. But the Nexus Q website seems to say that this thing can ONLY play back from the cloud. I don't really want to be upload 100 gigs of HD home video to the "cloud". Nor do I want my 60 gig mp3 collection uploaded to the cloud either. I buy most of my music now, but ~15 years ago when I was a broke college student with ethernet and napster, I didn't. I have lots of stuff that I wouldn't even know where to begin looking for it to purchase, nor do I have the time or desire to.
In short, screw the cloud, and hence, this device. This coming from someone who usually admires what Google is doing. They're just going the wrong way with TV technology it seems. It needs to be a mix of local and internet streaming services.
So I watched google's video introduction of the Q. http://youtu.be/s1Y5dDQW4TY
I have absolutely no clue what this thing does or is or anything really. Except that apparently it will let people come to your house and play music from their phone. The video feels like dot com boom marketing. It's like zombo.com.
Cause it's jobs for Americans , paid by selling goods to Americans and that America has traditionally made better products than the Chinese. Cheap is nice .. but jobs and peopple who have money to spend on products built in America makes America grow stronger in the world arena.
Stop thinking it's nationalism and patriotism . Buy American goods to give jobs to Americans. Simple and just what America needs : jobs jobs jobs.
Hmmm... let's see.
Assume $100 for Made in china and $200 Made in US. Further, assume that the extra $100 is a difference that goes into the cost of labor (so an american employee will have it)... everything else stays the same (Google profit, Google corporate tax, cost of components/raw material/energy/env protection).
* Buy Made in China - "US citizens" are less $100
* Buy Made in US - US population is worse by -$200 (price) + $100 (wages)=-$100 - the same, isn't it? Except... hang on... income tax for the $100 wages? Say 10%? Well, US population: -$110, US govt: +$10.
WTF? Either I'm wrong somewhere (where?) or US population is worse of and only US govt gets to profit?
Isn't to have "jobs, jobs, jobs... production costs/price be damned" somehow better for the population only if you can export what you produced? And, outside your own country, can you find a market willing to pay higher for an item that does the same as a cheaper one?
Questions raise, answers kill. Raise questions to stay alive.
Apple really should push the AirPlay device mirroring angle. I see it really being the ultimate iPad accessory -- it's awesome to be able to mirror stuff directly to the TV or play videos.
Still, we can see that the best guitars, for example, are made in either US or Japan. And you can definitely tell the difference between sweatshop manufacture and these. Country matters, ahem.
This device seems kind of poorly thought out.
First of all, the dumb shape. I want my AV devices flat and preferably stackable. At least AppleTV is flat, although its small size dictates it be on top if stacked (or just wall mounted..). A round device? No thanks.
Connectivity -- no optical output, only HDMI? That may work for people who use their TV as an HDMI switcher and leave the stereo on a fixed input, but it's nice having both for parallel output. The direct-connect speaker connection is silly.
And streaming only? WTF? I realize Google is all about networked storage, but even though I use iTunes, I'm not ready to commit to anyone's cloud based media storage.
I see Americans bragging left and right about the quality of Made in USA products without anyone ever questioning, but if I think about all the Made in USA products I've personally had which have been surprisingly many - and I make an exception for professional tools with which I've been satisfied but are not of a comparable category - I've found most of them to be sorely lacking in quality compared to similarly priced, sometimes even cheaper, alternatives made elsewhere. I have an American friend who is into guns (I'm not at all so excuse my lack of details) and has observed the same thing, he tells me everyone keeps bragging about $gunbrand that is Made in USA and not particularly cheap, but all the times he has tried it he has found it troublesome to operate while the "cheap Chinese ones" work just fine, and when he complains about this everyone shrugs him off as being "too inexperienced to appreciate the subtleties of $gunbrand". Admittedly the Made in USA things I've had are more of the "made of plastic"/"made of metal"/"made of ceramic"/"electrical-not-high-tech" kind of things but, while I'm sure Google has choosen much better partners for manufacturing, what happened with CircuitCo and the Pandora's PCB a few years back doesn't exactly put me at ease about this either. Hope to be proven wrong of course, but I, for one, have yet to see that "great American quality" everyone brags about in a consumer product.
I have to wonder if there is another motive to bringing manufacturing back on shore.. It's easy for a judge to decide to block a few shipments of phones from china because of a patent dispute. It's going to be a tougher decision to lay down a patent ruling that may shut down a factory putting US workers on unemployment.
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I just voted with my wallet I just ordered it and the tablet. In large part because I like Google and what they do. In many ways they add value without being dicks and support programmers, hackers and open source. And the fact that they on-shored the manufacturing. I hope it gets Netflix and Hulu though.
Don't forget that it is also manufactured in a country that still puts a little faith in Rule of Law: the workers aren't indentured servants and exposed to thousands of toxic chemicals with no right to know or MSDS disclosures, and that there are limits of chemical releases to the environment.
So it isn't manufactured in the US after all.
As long as it doesn't lead to TV or Radio ads done Bob Seger or Bruce Springsteen or that could in any way can be misconstrued as a Real Men of Genius spoof.
The thing to understand about patent law in the US is that there are effectively two separate systems of patent enforcement -- there are regular infringement cases that go through the federal district courts, and there are actions to block imports that go through the International Trade Commission.
These systems are governed by effectively different law, which makes defenses that would be applicable in regular federal court unavailable in ITC proceedings. It is thus often possible to use the ITC process to block import of products (at least temporarily) when it would not be possible to win an infringement case in the regular courts.
Onshoring is complete protection against the use of the ITC process, which has been an important weapon in the ongoing patent wars.
I don't think its the main reason Google did it with the Nexus Q -- the ability to shorten cycle time between design, engineering, and manufacturing that they've cited is a compelling reason that fits with what has been well-documented about Google's general approach to products -- but given the patent wars raging between Apple, Microsoft, Google, and -- for the latter two -- affiliated hardware manufacturers, its a valuable benefit.
Nice that they are manufacturing in the U.S., but by the look of it the only reason they are doing so is that they realize this is a niche product with limited sales potential so they are doing very small manufacturing runs. For the relatively small runs they must be doing, it is doubtful that getting manufacturing set up in China would be significantly cheaper - the economics work out when you are doing hundreds of thousands or millions of units, not a handful of thousands that I would guess they are looking at for this. I'd suggest the reason they aren't pushing the "Made In USA" angle is because if the product does somehow take off, they probably plan to move manufacturing overseas.
That said, I really don't understand this device. It doesn't match the functionality of competing media streaming boxes (even Google's own). The amp adds complexity and cost, but it is so small that it is only ever going to be enough for a pretty small room - 12.5 watts/channel doesn't go very far even if you have very efficient speakers (speakers extra). The only market seems to be as a tech toy to show off to your buddies, maybe something an executive would stick in their private office to impress people - except it isn't even outrageously expensive enough for that (maybe if it was $3,000). I just don't get what they are trying to do with it, though the design does look kind of cool.
It's so nice to have both, that Google decided to put a TOSLINK digital audio output on the Nexus Q alongside the HDMI. I don't know where you got the idea that it had only HDMI and no digital output.
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Look at the picture. There are wires with screw lugs being attached by hand. Why aren't all the parts on one board? Whatever happened to "design for manufacturing" and "vertical assembly", which is how Sony built Walkmans cheaply with expensive labor.
(What probably happened is that nobody at Google ever worked in a big production plant.)
Why the heck not? Based on the number of people I've talked with that complain about everything being made in Japan, China, or anywhere else across the big ponds, they ought to make that phrase part of the darned product name. Their sales certainly wouldn't be hurt by boasting about it being manufactured domestically.
CUR ALLOC 20195.....5804M
Raise your hand if you want "social media" mixed with your TV watching experience. *crickets*
Facebook wall activity: "Charles is watching Gilmore Girls on CWTV."
That's backwards. It's "Bill is watching videos his friends posted to Facebook. Hasn't watched TV in ages."
My God, it's Full of Source!
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I was about to point out many of these same flaws, but you more thorough than I would have been.
The important concept to take away though is that effects of buying American doesn't end with the purchase of one product. The effects have the potential to compound.
While the rest of the I/O stuff was awesome, I see this as an already failed product. I certainly don't have a use for it, whereas I'm ecstatic to purchase a Nexus 7 at some point. Let's hope the good idea of on-shoring doesn't die with the bad idea/price of the Q.
I hold very few opinions. I hold information based on observation and fact. If you wish to disagree, please use facts.
It's a vicious cycle to an extent. The poorest people like to go to Walmart and pay the lowest possible prices for cheaply made Chinese manufactured products.
Yes and no. Walmart originally was stocked with largely US made goods. Their lower prices were through volume purchases, better distribution, etc. Walmart was actually an IT pioneer. They wired up their cash registers and stores in the 1970s, sent near real time sales data to headquarters to track sales and improve distribution and stocking, reduce inventory, etc. They opened their near real time data to manufacturers in order to get these manufacturers to participate in Walmart's pioneering digit purchase order and restocking programs. Walmart did data mining to further improve distribution and stocking, to respond to seasonal trends and news driven events (ex. weather).
Walmart going nearly entirely imported goods came after all this. And again, it was guided by consumer preference. As Walmart experimented with lower priced imported goods its customers abandoned the domestic goods. So even in the Walmart case offshoring was driven by consumer preferences.
You are correct that there is a feedback loop, but at its core the consumer still drives the system. I am a bit skeptical that Google's experiment is a good one but if more corporations conducted such experiments there is the opportunity to move things in the opposite direction. Especially with respect to goods that are not necessities needed to "get by".
Paying more for a domestically built device (ok, same-continent, since I'm Canadian) is one thing.
However, supported applications lists:
Google Play Music
Google Play Movies and TV
YouTube
Where's the Netflix etc?
A device that costs more and potentially does less than other devices currently on the market? Not likely to do so well unless Google has some new tricks coming soon.
I'm also wondering about some of the other specs:
32 RGB perimeter LEDs
What are those for? Rave simulation mode? Oh wait "The 32 LEDs that ring Nexus Q shift and change color in time to your music. Choose your favorite effect and put your Nexus Q where it can be seen, and touched." Uhhhhh OK
And the best part. There's apparently no remote. So you need an existing Android device to use that. Add a few hundred at least to the pricetag if you haven't got one of those already.
China will be the dominant market for iOS devices and Apple products in general in the very near future.
Combined with the rest of Asia, I think the value of getting hardware anywhere in China within a couple of days will be as much of a concern for Apple as getting hardware to Americans in a similar timeframe.
My God can beat up your God. Just kidding...don't take offense. I know there's no God.
It should probably say assembled in the US. I find it really hard to believe it's all American from the ground up.
Obviously it won't built here, from 100% US sourced parts. The real question to me is what percentage of it is made here.
If it's an injection molded box, made here, filled with bits from China, it's "assembled in the US", it's a marketing ploy, If substantial parts are made here, it's something to get excited about, and pay a premium for.
Time will tell.
I hope they have chosen to use NON union labor. Otherwise they are just trading one set of communists for another.
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Then they would need to pay for workers to service those robots too. I kind of suppose (and somewhat hope) Google isn't yet able to build robots to service other robots yet.