It's not (just) about cheap labor. The sheer density of resources and knowledge in Shenzhen is just insane.
Manufacturing at small to medium scales is so heavily determined by small blockers/latencies. Missing some component, or need a modified PCB? In the US or Europe you'd be happy to find a replacement within a week, or more likely have to wait a month for it to come from China. In Shenzhen you can probably walk 2km and pick it up yourself in under an hour.
Manufacturing at small to medium scales is so heavily determined by small blockers/latencies. Missing some component, or need a modified PCB? In the US or Europe you'd be happy to find a replacement within a week, or more likely have to wait a month for it to come from China. In Shenzhen you can probably walk 2km and pick it up yourself in under an hour.