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SylvieBarak
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re: Nokia shifts assembly to Asia, plans to lay off 4,000
SylvieBarak   2/10/2012 6:11:24 AM
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+1 :) Every little helps!!

yalanand
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re: Nokia shifts assembly to Asia, plans to lay off 4,000
yalanand   2/9/2012 9:00:54 AM
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This is a very good move by Nokia considering the fact that the most of the Nokia users are situated in Asia region. But sad to know that it plans to lay off 4,000, do it mean that these jobs are shifting to Asia ?

chanj0
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CEO
re: Nokia shifts assembly to Asia, plans to lay off 4,000
chanj0   2/9/2012 7:24:17 AM
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The reality is most electronics products are made in China, final assembly or some major parts/ modules. History shows quality can be improved by proper manager and time. Today there are more smart phones that are made in China than there was regular phones that were made in elsewhere.

Chee Choy
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re: Nokia shifts assembly to Asia, plans to lay off 4,000
Chee Choy   2/9/2012 5:18:06 AM
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Would it be like Motorola moved to China, Tianjin ? Eventually worst in quality, it is better follow Apple kind of supply chain management, if follow Motorola, it will be end up like Motorola, lah !

DMcCunney
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re: Nokia shifts assembly to Asia, plans to lay off 4,000
DMcCunney   2/8/2012 10:25:03 PM
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"Will the US eventually be forced to get nastier with tariffs?" What purpose would tariffs be intended to serve?

DMcCunney
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CEO
re: Nokia shifts assembly to Asia, plans to lay off 4,000
DMcCunney   2/8/2012 10:23:25 PM
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"It would be much more socially responsible to keep stable operations in-place, then if additional capacity is needed a different geography would be considered." Consumer electronics all tend to wind up in the same place: devices become commodities, with commodity pricing and paper thin margins, the only real difference between equivalent products from different manufacturers being price, and competition all *on* price. There is enormous pressure on costs because the lowest cost producer wins. It's no surprise that Nokia is trying to lower costs, since they largely *are* in the commodity end of the market. "Social responsibility" is two-edged: moves intended to protect jobs in areas with higher costs means higher prices for consumers buying the products to cover those costs. You don't get one without the other. And as mentioned, higher prices may make your products uncompetitive, and force you to shift production and layoff workers to avoid going out of business.

DMcCunney
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CEO
re: Nokia shifts assembly to Asia, plans to lay off 4,000
DMcCunney   2/8/2012 10:09:23 PM
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I'd call this cost savings, overall, with labor costs only one factor. Nokia currently *assembles* phones in Finland, Hungary, and Mexico, but were do the parts that are assembled come from? They're all made in the Far East, and if I'm concerned about optimizing my supply chain, I'll want the factory that does the assembly close to the one that make the parts I'm putting together. And since my principle growth market is in the Far East, I'm building my devices closer to the customers I hope will buy them. It's easy enough to see why Nokia is doing this.

PJames
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re: Nokia shifts assembly to Asia, plans to lay off 4,000
PJames   2/8/2012 9:34:36 PM
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"It would be much more socially responsible to keep stable operations in-place" Based on the big assumption that said company wouldn't lose market share due to noncompetitive products and have to lay off the people eventually anyway.

selinz
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re: Nokia shifts assembly to Asia, plans to lay off 4,000
selinz   2/8/2012 8:49:29 PM
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I guess with relatively small items (e.g. phones), geographical proximity doesn't matter. I can order knock off batteries at 1/3 price from Hong Kong with free shipping.... Will the US eventually be forced to get nastier with tariffs?

green_ee
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Rookie
re: Nokia shifts assembly to Asia, plans to lay off 4,000
green_ee   2/8/2012 8:13:11 PM
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Second-degree outsourcing. Firstly the assembly work gets outsourced to Mexico, etc, then off to Asia. Someday, Asia will be deemed "too expensive", and then we'll see further outsourcing to other regions, probably Africa and parts of the Middle East. Each time a company relocates it's operations, a devastating void is left in the region that was shut-down. It would be much more socially responsible to keep stable operations in-place, then if additional capacity is needed a different geography would be considered. I agree with @chanj: The labor costs in Mexico are probably very similar to Asia.

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