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Why is Europe so bad at consumer electronics.

  • 08-09-2014 11:46PM
    #1
    Registered Users, Registered Users 2 Posts: 8,182 ✭✭✭


    Why are European companies so poor in the field of consumer electronics? When was the last time you bought a phone, TV or tablet made by a European company? Nokia and Philips were the last products that I bought, about 5 years ago. Both of these, once dominant brands have now been sidelined.
    Why can Asia and the US do it but not Europe.

    Multo autem ad rem magis pertinet quallis tibi vide aris quam allis



«1

Comments

  • Registered Users, Registered Users 2 Posts: 12,642 ✭✭✭✭errlloyd


    Can the US do it? I know apple is American, but realistically iPhones and S5s come out of the same factory in China.


  • Closed Accounts Posts: 2,928 ✭✭✭Hotfail.com


    Dunno.


  • Closed Accounts Posts: 477 ✭✭The Strawman Argument


    They're all made by ODMs located in Taiwan and operating in China anyway. 94% of laptops in 2011 were made by taiwanese companies, iirc. Makes sense for whatever extra work there's to be done on top of that to likely be cheaper in some nearby countries too, easier to build relationships and whathaveyou.

    errlloyd wrote: »
    Can the US do it? I know apple is American, but realistically iPhones and S5s come out of the same factory in China.
    Yep, Apple is more a great marketing/design company than a consumer electronics company ...someone like Samsung might be closer to a pure consumer electronics corporation?


  • Registered Users, Registered Users 2 Posts: 1,794 ✭✭✭Aongus Von Bismarck


    I have a Bang and Olufsen television that is made in Europe.

    Sennheiser are a German brand with much of their products being produced in Ireland.

    The premium end of the market still has European companies involved. You need to be able to pay that premium to know the product was designed and manufactured in Europe.


  • Closed Accounts Posts: 3,971 ✭✭✭Sh1tbag OToole


    Because of the size of frickin Shenzhen at this stage, any electronic component you can think of and it's factory is on your doorstep. Feck all regulation, loads of cheap workers (though this is changing)

    The thing about it is if you tried to start manufacturing electronics here and even if the price of components or labour was no issue the powers that be will do everything to make life hard for you. You will need to comply with all sorts of nonsense laws, pay high rent, rates, mandatory insurance whereas in China a CE certification only costs a scrap of paper and a bit of ink.

    China seems to devour European elecronics companies, the process usually goes as follows:
    1- Prestigious brand feels the need to compete with the lower end of the market (cheap Chinese sh1t coming in)
    2- Buys some rebranded or custom made goods from a factory in China
    3- Mid range products also affected, at this stage the company might open a factory in China or sign a big contract with an existing one there
    4- Only the very high end stuff still made in Europe
    5- Things go bad for the European company, the Chinese factory now has enough money to buy them out
    6- The brand and a small office of support staff continues to operate in Europe, but controlled by chinese


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  • Closed Accounts Posts: 1,305 ✭✭✭131spanner


    Cos Asians have little-er hands to piece together the doo-hickeys.

    It's simple science.


  • Registered Users, Registered Users 2 Posts: 45,447 ✭✭✭✭ancapailldorcha


    It's nothing to do with quality. People just want either cheap electronics or something with a daft Apple logo on it that works no better than most of the devices available.

    The foreigner residing among you must be treated as your native-born. Love them as yourself, for you were foreigners in Egypt. I am the LORD your God.

    Leviticus 19:34



  • Posts: 3,918 ✭✭✭ [Deleted User]


    The money isn't in the gadgets alone, it's in the high tech stuff that powers them.
    here are some of the percentages of dollars received for each iPhone sold, according to Reich: 34%, Japan; 17%, Germany; 13%, South Korea; 6%, United States; and only 3.6% to China because, he says, that nation is only assembling the product not producing the components.


  • Closed Accounts Posts: 18,299 ✭✭✭✭The Backwards Man


    Workers have too many rights and entitlements.

    Eradicate the workers and Europe will rise again.


  • Registered Users, Registered Users 2 Posts: 19,832 ✭✭✭✭Muahahaha


    Workers have too many rights and entitlements.

    Eradicate the workers and Europe will rise again.

    That'll never work. Our big beefy European hands wont be able to make gadgets and the whole continent would become a bunch of Luddites


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  • Closed Accounts Posts: 13,925 ✭✭✭✭anncoates


    We need to get kids into factories here to catch up.


  • Registered Users, Registered Users 2 Posts: 6,133 ✭✭✭FloatingVoter


    Because design and engineering are still seen as separate galaxies from an education point of view. Apple marry the two - Jonathan Ive had to leave Europe before he got a free hand at Apple.
    When Art colleges have an engineering department and engineering departments have design courses on the same campus, you'll see results in everything from computers to cars.


  • Closed Accounts Posts: 18,299 ✭✭✭✭The Backwards Man


    anncoates wrote: »
    We need to get kids into factories here to catch up.
    Then who'd work downd mill?



  • Registered Users, Registered Users 2 Posts: 627 ✭✭✭House of Blaze


    Two words..

    Cheap labour.


  • Registered Users, Registered Users 2, Paid Member Posts: 24,079 ✭✭✭✭Akrasia


    Ireland makes shed loads of microprocessors in Kildare.

    We don't assemble many finished products anymore since Dell fecked off, but it doensn't mean we don't have an important manufacturing industry based here.

    Ban billionaires



  • Registered Users, Registered Users 2 Posts: 7,156 ✭✭✭srsly78


    Samsung do a lot of their software engineering in London.


  • Registered Users, Registered Users 2 Posts: 1,179 ✭✭✭salamanca22


    A lot of the engineering is done in europe however the actual finished product comes from elsewhere as it is much cheaper to manufacture outside of Europe.


  • Site Banned Posts: 2,922 ✭✭✭Egginacup


    SafeSurfer wrote: »
    Why are European companies so poor in the field of consumer electronics? When was the last time you bought a phone, TV or tablet made by a European company? Nokia and Philips were the last products that I bought, about 5 years ago. Both of these, once dominant brands have now been sidelined.
    Why can Asia and the US do it but not Europe.

    I don't think the US manufacture anything anymore and when they did I though the quality was generally poor. In the field of European electronics I've possessed European gadgets in the past made by the following companies and have been very happy with the quality:

    Philips
    Grundig
    Telefunken
    Nordmende
    Bang & Olufsen
    Siemens

    But one has to take into consideration the Japanese culture. They are masters at making things and would sooner break even making a quality product they can be proud of than make a profit producing something substandard.


  • Registered Users, Registered Users 2, Paid Member Posts: 9,423 ✭✭✭cml387


    Egginacup wrote: »
    I don't think the US manufacture anything anymore and when they did I though the quality was generally poor. In the field of European electronics I've possessed European gadgets in the past made by the following companies and have been very happy with the quality:

    Philips
    Grundig
    Telefunken
    Nordmende
    Bang & Olufsen
    Siemens

    But one has to take into consideration the Japanese culture. They are masters at making things and would sooner break even making a quality product they can be proud of than make a profit producing something substandard.
    Bear in mind there is no manufacturer of LCD displays in Europe so tv's will be sourced from Asia.
    Philips have long since transferred their consumer electronics to China.


  • Registered Users, Registered Users 2 Posts: 28,787 ✭✭✭✭ScumLord


    Eradicate the workers and Europe will rise again.
    I doubt it, if we eradicate the workers it would just leave the people on the dole and children.

    Electronics are made in Europe, there are electronic components made in Ireland and put into Irish products. They just tend to be more expensive so they sell to the higher ends of the markets or on niche products like home automation.


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  • Registered Users, Registered Users 2 Posts: 7,156 ✭✭✭srsly78


    Ireland is one of the largest exporters of software in the world (was actually #1 a few years ago). All those fancy electronics would not be much good without this.


  • Closed Accounts Posts: 4,436 ✭✭✭c_man


    srsly78 wrote: »
    Ireland is one of the largest exporters of software in the world (was actually #1 a few years ago).

    Are we really? I work in software dev, have heard this bandied around for years but is it actually based on anything? Not having a go, genuinely curious.


  • Closed Accounts Posts: 1,076 ✭✭✭Reindeer


    SafeSurfer wrote: »
    Why are European companies so poor in the field of consumer electronics? When was the last time you bought a phone, TV or tablet made by a European company? Nokia and Philips were the last products that I bought, about 5 years ago. Both of these, once dominant brands have now been sidelined.
    Why can Asia and the US do it but not Europe.

    Let's not confuse manufacturing with designing. China doesn't design a damn thing. Their prominence in manufacturing is purely due to the fact they can use a combination of CNC machining and nearly slave labour to bring a product to market at a mere fraction of the costs of manufacturing in Europe. You are starting to see this in Europe - back in the States, China has been prominent for decades.

    However, most US medical brands manufacture their equipment, aside from circuit boards, in the US. And all that fancy military stuff nearly is made start to finish in the US.


  • Registered Users, Registered Users 2 Posts: 7,156 ✭✭✭srsly78


    c_man wrote: »
    Are we really? I work in software dev, have heard this bandied around for years but is it actually based on anything? Not having a go, genuinely curious.

    Yes it's true, go look up the statistics. Note that this refers to exports, not total software produced. So while it's true that many larger countries produce much more software, much of this gets used domestically. We export a lot because we have so many multinationals based here, and our domestic market is small.


  • Registered Users, Registered Users 2 Posts: 28,787 ✭✭✭✭ScumLord


    c_man wrote: »
    Are we really? I work in software dev, have heard this bandied around for years but is it actually based on anything? Not having a go, genuinely curious.
    The trick is to upload the software twice.


  • Closed Accounts Posts: 4,436 ✭✭✭c_man


    srsly78 wrote: »
    Yes it's true, go look up the statistics..

    No, too busy writing software for export.


  • Closed Accounts Posts: 258 ✭✭Bang_Bang


    Egginacup wrote: »
    But one has to take into consideration the Japanese culture. They are masters at making things and would sooner break even making a quality product they can be proud of than make a profit producing something substandard.

    Genichi Taguchi, and Kano spring to mind here, the mindset in Japan is that is fcuking shamful to create a shíte product.

    Guess where most of our product complaints come from? Japan. They really want everything to last forever. They'll send it back even if it's working ok, seriously I mean that.

    Where I work, the design and qualification and initial process ramp is done here in Ireland, then we send it to Asia for high volume manufacturing.


  • Registered Users, Registered Users 2 Posts: 4,122 ✭✭✭BeerWolf


    Got a number of German products...


  • Registered Users, Registered Users 2 Posts: 20,237 ✭✭✭✭jimgoose


    c_man wrote: »
    Are we really? I work in software dev, have heard this bandied around for years but is it actually based on anything? Not having a go, genuinely curious.

    Yes. Think of it not in terms of boxes of Windows MeToo(TM) Aluminium Edition(R), but in terms of revenue. ;)


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  • Closed Accounts Posts: 2,481 ✭✭✭Barely There


    The fact of the matter, is that the average sausaged-fingered European scientist will never be able to compete against the nimble-fingered Asian in the field of miniature electronics.


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