Why doesnt China flood the market with cheaper laptops/computers?
Answer:
because you cant simply ship your goods into another country and sell them there. you need a license first, or as is the usual way of things, a company in that country to sell them for you.
now trhe government doesnt want this to happen, and what it does is called. damn, i have no idea what it is called in english. protective tolls? anyway, it means that the importer has to pay an amount of money to the state for every single item they want to import. these tolls are designed to make the items more expensive so the native products can compete with them on the market.
the second reason is: the chinese are not stupid. they know exactly that they are the upcoming big cheese on the worldmarket. IF they play their cards right. that includes not to destroy other major economies, or they wont have anyone to deal with anymore.
Most laptops are made in China - as are most televisions.
That's why you can buy some off brand name of tv for much less than a Sony, but may have been made in the same factory.
If they 'flood' the market too quickly, the price will drop dramatically, thus lessening their profit.
A slow trickle will keep the market well within the profit margins.
Its actually simple. Lol, there's a limit to how many processors AMD and Intel can provide, there's a limit to how many Graphics cards Nvidia/ATI can provide, RAM, HDDs etc. All these have to be paired in the right combination by the right companies etc etc. As you can see, the whole economics of the situation is such that the Chinese couldn't flood the market anymore than they already are.
As a side note, I think most parts are made somewhere then sent to China for assembly, then sent around the world. I.E my new Samsung LCD 32" was assembled in China.
Have you heard of the Lenovo brand? Formerly known as IBM Thinkpads. This is a Chinese entity.
There may be trade agreements that limit the number of computers that can be imported from any particular country. This would be separate from the number of computer PARTS that are allowed into the U.S.
China can't flood the (US) market because of very high import taxes on their computers. Who would buy them at such a higher price ? That is one way of trying to keep a trade balance between countries. Japan does this with our cars (adding a high import tax) to protect their auto industry. This is somewhat understandable because they are much smaller than us. China is doing whatever we (our government) allows.
Are you crazy ?
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