Designed in California, made in China: how the iPhone skews U.S. trade deficit
A look at misguided trade arguments against China: The iPhone X has a manufacturing cost of about $400, an $800 wholesale cost, and a $1,200 retail unsubsidized cost. The manufacturing cost includes about $120 to Samsung for the display, about another $45 to Toshiba (Japan) and Hynix (South Korea) for memory chips. Ultimately, only about $20 goes to China, but the entire $400 is registered as Chinese import.
https://www.reuters.com/article/us-usa-trade-china-apple/designed-in-california-made-in-china-how-the-iphone-skews-u-s-trade-deficit-idUSKBN1GX1GZ?feedType=RSS&feedName=newsOne&google_editors_picks=true
Designed in California, made in China: how the iPhone skews U.S. trade deficit
The big trade imbalance - at the heart of a potential trade war, with Trump expected to impose tariffs on Chinese imports this week - exists in large part because of electrical goods and tech, the biggest U.S. import item from China.
Apple Inc’s iPhone, however, illustrates how a big portion of that imbalance is due to imports of American-branded products - many of which use global suppliers for parts but are put together in China and shipped around the world. |
