US computer brands gone in 20 years?

According to Stan Shih the founder of Acer Computer the United States will no longer be a force in the production and distribution of personal computers. Mr. Shih says that the US will no longer be able to compete in the low cost computer market. He says the US will be out of business with in 20 years and that the Chinese will take the market over completely during this time.

Mr. Shih was quoted as saying the following:

I would like to make a (comment) in response to this announcement in the following paragraphs.

First of all, I think this prediction is off by about 20 years or so. It seems to me that the United States can not compete with China in the low cost cheap computer market right now. They have not been able to compete for a long time.

With an average wage of about a dollar a day being paid to the work force in China how can a country that has a much higher cost of living compete? They can't and they never will be able to compete with a country that floods the market with cheap product.

It's a well-known fact that the United States has a massive trade deficit with foreign manufacturers. This deficit is in the trillions of dollars and growing and it will never even out.

If you look at the parts that go in to a computer you may find that the majority of these parts are manufactured in China or other places where the cost of doing business is not as high. The United States does not manufacturer as many consumer products as it once did decades ago. With that being said, products that are merely "assembled" in the United States are in fact not American made, they are Chinese made.

Saying United States computer makers simply "do not know how to put such products on the market" is absurd and in fact it is rather insulting. What does it take to put a product on the market? I'm by no means an expert but I think you would need to produce the product (cheaply), find marketing partners, set up advertising and then sell the product at an attractive price. It can't be that hard. The only negative against United States manufacturers and a plus for Chinese manufacturers is the cost of doing business.

I'll sum up this narrative by saying that when you are able to pay a worker 20 cents per hour while the competitor has to pay 20 dollars per hour then which manufacturer will win? It's simple really and it doesn't take a rocket scientist to figure it out.

Don't get me wrong, I love my cheap Acer computer that will crap out after a couple of years of light use. Why should I pay top dollar for something "assembled" in America that might not be put together any better then the foreign brand? I like cheap as much as the next guy. The only issue I have with founder Stan Shih's comment is that it seems like he is trying to kick a dead horse while it is already down.

China has the market in cheap computers sewed up and there is not another country on the planet that can compete. Everyone knows that so please don't keep rubbing it in. Enjoy your retirement Stan, as I'm sure your golden parachute will enable you to live in luxury for you're remaining days, courtesy of the foreign and (American) consumer.

Cheers...