Yabby wrote:

>>The thing is, assembling the ipad is only a tiny fraction of its final value. The big money is being made elsewhere>>

Agreed.

And that's why I think China's current economic model is reaching the end of its life. If they want the living standards of the Chinese population to continue rising they're going to need to move beyond low value added mass assembly to higher value added areas which is what they're trying very hard to do.

But now it gets more difficult. I do not expect China to implode but I do expect their growth rate to slow down just as Japan's did.

But China also faces an aging population. Will they get old before they get rich? I don't know.

BTW Yabby it's a pleasure having an intelligent conversation in this forum with somebody not blinded by ideology or befuddled by mostly imaginery conspiracy theories.

Another BTW Yabby

Interesting you mention Samsung. I've got them pegged as a company to watch. If I had to choose between Samsung and Apple as a medium to long term investment I'd go for Samsung.

Steven, I agree with you that Samsung are a company to watch, they
invest huge amounts in r&d and are making serious money, whilst
some of the older Japanese electronics companies are running at a
loss. Their new Galaxy Note will be an interesting product to
watch, its kind of a cross between a smart phone and a tablet.
It will be interesting to see if Apple copy the concept.

I think that given time, China will act much like Japan did, only
10 times bigger. They started with so called "Jap crap" in the 60s
but over time just kept improving. People thought I was crazy when
I bought a Toyota Corolla in the 70s, they were all buying European
brands. Yet it ran like a charm whilst I had it.

So I think that similar companies will emerge from China, those who
focus on consumer value for money, will grow and grow. Other emerging
economies will do some of the el cheapo work, like Bangaladesh or
Vietnam, or a host of others.

Meantime the rising Chinese consumer class will help Australia
keep the wolf from the door, as we keep exporting mining and
agricultural products to them. So overall for us, China is a good
thing. Our consumers benefit, so do our exporters.

Arjay, well he'll probably go out of business, as the world leaves
him behind :)

These central bankers ;'
China has much to bring up to standard, at the moment the people in the manufacturing city's are doing really well, probably add up to many millions of people.
There are many millions that do not enjoy their new found wealth, and that is what will keep China expanding for many more decades to come.
To eliminate China's cheap useless junk, would be a plus for AU, but someone else will fill the hole.
Unless there is a mechanism that can prevent the importation of trinket commodities, the trash will continue.