| Considering that 1650 RMB is probably about the average weekly wage in Shanghai, it is very expensive. I believe iPod is being made in China. They should have been sold a bit cheaper there. But China just has so many people that even a very small percentage of the population can always represent a huge demand. There is no needs to lower the price when selling goods in China. The Starbucks, Mcdonalds, Pizza Hut and Häagen-Dazs all are selling their stuff in China at the similar prices in US. Although they became luxury brands in China, their places are always full of customers. With the average local labor cost that is lower than 25% of cost in US, it seems that those companies are making much better profit in China. |