[opendtv] Re: TV Prices Fall, Squeezing Most Makers and Sellers

Happy Ney Year Craig and everybody on the list!

The way you and me use term "innovation follow manufacturing" is a little
different. I have manufacturing company designing Video and Audio equipment.
Our entire R&D is done in Mt. Vernon, NY and all manufacturing is done in
Asia. However, every time we design new products, and we do generate our own
concepts, systems and detail designs, we need to get information from our
customers and use our knowledge in technology and parts available to create
these new products. It is use to be that all advanced HDMI IC's were
available from US vendors. We had regular discussion with these vendors that
helped them to create new and better parts and for us to use these parts for
new products. That paradigm has shifted in the last 5 years. Now most
advanced and price competitive HDMI IC's are made in Asia. These IC makers
simply follow their customers that buy and use all the IC's there. 

Yes we in US continue to innovate but this innovation creates jobs mostly in
Asia for both manufacturing of products and manufacturing of enabling IC's. 

To have enabling technology (in our case IC making) to be centered in US is
as important in creating new products (and jobs) as actual product
innovation. Both IC manufacturers and product manufacturing feed each other
and that used to create a global leadership for the US before. That position
is eroding now.

There is a nice saying about product development. If ready to go product is
100% of effort, the 1% of it is an "inspiration" and 99% is
"perspiration"... 

Mike Tsinberg
http://keydigital.com

-----Original Message-----
From: opendtv-bounce@xxxxxxxxxxxxx [mailto:opendtv-bounce@xxxxxxxxxxxxx] On
Behalf Of Craig Birkmaier
Sent: Tuesday, January 03, 2012 9:30 AM
To: opendtv@xxxxxxxxxxxxx
Subject: [opendtv] Re: TV Prices Fall, Squeezing Most Makers and Sellers

At 9:44 AM -0500 12/30/11, Mike Tsinberg wrote:
>The innovation also follows manufacturing. How long we can innovate 
>when to build a simple prototype we need to buy every part in Asia?
>Do you know that most advanced consumer products are first field tested 
>in Japan and Korea?
>

Sorry Mike but I disagree.

Innovation and investment LEAD manufacturing.

Where the parts are manufactured makes little difference in our 
global economy; I will agree that government policy CAN drive 
investment to other countries, as we are seeing with the current 
anti-business tax policies in the U.S.

Apple is investing billions in manufacturing partners across Asia and 
even in the U.S. (e.g. the Samsung chip factory in Austin). What is 
important is that they are driving innovation in components then 
investing in the factories to build them, This gives them two huge 
advantages in the marketplace:

1. Access to new component technologies ahead of competitors;

2. Lower prices than competitors on these components as they become 
commodities.

I do agree that we can use technology to bring manufacturing jobs 
back to the United States. But this cannot happen until we bring the 
size of government under control and make the U.S. an attractive 
market for manufacturing investment.

The problem is not cheap labor. Both the U.S. and Europe are going 
bankrupt and are driving investment to other countries...

Regards
Craig
 
 
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