In 2009, Harvard Business School professors Gary Pisano and Willy Shih argued in the pages of the Harvard Business Review that technology companies that outsourced production were making a big mistake, and that the U.S. was being permanently harmed as high-tech manufacturing know-how moved to Asia. They may still turn out to be right about the geographical impact — the southern Chinese city of Shenzhen, home to Foxconn’s biggest manufacturing facility as well as the headquarters of Huawei, Chinese internet giant Tencent and scores of other tech companies, certainly has prospered from the shift. But for individual tech companies, getting out (or staying out) of the low-margin, high-investment business of manufacturing just keeps paying off.
http://www.bloomberg.com/view/articles/2016-08-12/high-tech-manufacturing-isn-t-worth-much
