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Most of that $600 is BOM inputs where most of high end components worth $$$$$ is ultimately captured by US / western suppliers (i.e. chips, sensors, screens for
by maxglute 2y ago
Most of that $600 is BOM inputs where most of high end components worth $$$$$ is ultimately captured by US / western suppliers (i.e. chips, sensors, screens for iphones). The actual value of export from PRC in terms of material and labour is $, but still counted as $$$$$+$. Though iphone/high tech unique since US plays hand - sanction $$$$$ PRC components so Apple can't integrate them and raise PRC share of Apple BOM, which IIRC grew to ~20% and on way 40%+ (prc memory + screen) and now <20%. This is something PRC stats has started adjusting for.
- refurb 2y agoNo, that’s not how the math works. Apple Pay’s for the valued added, not the total value. So if Foxconn is assembling a phone from components, they are paid for just that. The export is labor, not a fully valued finished phone.
- maxglute 2y ago>not a fully valued finished phone. No, I should have been more clear relative to original comment. I was pointing out even % Apple charge customs, i.e. imports from PRC, large % is still ultimately not value captured by PRC. For full priced iphone, i.e. $1200, Apple captures or offshores another big slice of $800 in Ireland for intangibles like software related IP. But within the $400-600 BOM for physical device / import unit cost for customs, ~80% are western components, i.e. western value capture.