iPhone economy : each "Made In China" iPhone has $6 Chinese content

[Korean]

Why isn't the iPhone made in America? | Prestowitz

Recently, a new tale has been told by the Asian Development Bank Institute (ADBI) which dissected the supply chain of the iPhone. The study found that China is actually not doing much of the manufacturing. In fact, it is mainly assembling the various parts of the iPhone into the final product and then shipping that to the United States. Because of the way trade statistics work, U.S. customs attributes the entire manufacturing value of the iPhone to China, the point of shipment of the final product. This results in the $2 billion U.S. iPhone trade deficit with China. In actuality, says the ADBI, China's assembly of the iPhone parts accounts for only about 3 percent, or $6, of the final value and because China actually imports some of the more expensive parts from the United States, it actually has a deficit on iPhone trade with America.

The ADBI study is quite good and true as far as it goes. The bulk of the manufacturing of the iPhone is not done in China (although that is changing rapidly) or in any other low-cost labor country. The battery chargers, camera lenses, and timing crystals all come from Taiwan. The screen is from Japan, the video processing chip from South Korea, and many of the other chips Taiwan's Taiwan Semiconductor Manufacturing Company. In all, over nine countries produce the parts and components that all head to final assembly in China. So, it is indeed, quite possible that the United States has a trade surplus with China qua China on the iPhone.

That raises more interesting questions. The other Asian countries -- particularly Japan, but also Korea and Taiwan -- do not have low labor costs. Indeed, Japan and Korea are members of the Organization for Economic Development (OECD), the long time rich nations club. Furthermore, the parts they supply for the iPhone -- semiconductor chips, displays, lenses, etc. are not labor intensive. They are capital and, above all, technology intensive. Exactly the kind of products in which the United States is supposed to be the leader. So if America actually did produce the stuff it says it is good at producing, it wouldn't have a trade deficit with Asia for which China is the proxy at all. It would have a trade surplus and 20-40,000 more jobs than it has.

Chinese nationalists like to brag about how iPhone symbolizes "Made In China", but there is little Chinese content in each iPhone; Chinese contribution is mostly cheap labor and some minor cheap parts worth $6, and Foxconn can always lift its iPhone factory up and move to Vietnam should the time comes. This is the reason why China runs massive trade deficits against Taiwan and Korea, because all the high-value high-tech parts of "Made In China" product come from those two countries.

Furthermore, the article basically describes China as nothing more than a proxy in a real trade war against Japan, Taiwan and Korea.

 

[LetsGetRowdy]

i am a chinese nationalist and i say Fu*k the iphone.

 

[isro2222]

@Pax sinica u are chinese nationalist so what?.... Who listen to u in chinese goverment?.... No matter what u say ur views are next to nothing. Chinese don't have a say in chinese goverment.... You do what they say.... Like following the master.... By the way i love electronics made in taiwan.... Also korea and japan.... Never liked made in china. Like to spend more for the 'BEST'.

 

[FairAndUnbiased]

Why isn't the iPhone made in America? | Prestowitz




Chinese nationalists like to brag about how iPhone symbolizes "Made In China", but there is little Chinese content in each iPhone; Chinese contribution is mostly cheap labor and some minor cheap parts worth $6, and Foxconn can always lift its iPhone factory up and move to Vietnam should the time comes. This is the reason why China runs massive trade deficits against Taiwan and Korea, because all the high-value high-tech parts of "Made In China" product come from those two countries.

Furthermore, the article basically describes China as nothing more than a proxy in a real trade war against Japan, Taiwan and Korea.

When have we ever talked about iPhone as made in China? Can you find 1 Chinese here that says the iPhone is made in China and proud of it?

The real issue is, how are you going to do anything when we control rare earths and the paths that food and oil take to get to South Korea?

 

[Korean]

how are you going to do anything when we control rare earths

Buy from the US. The US does have rare earth mines; they were deactivated when Chinese low-balled in pricing back in the 90s. Nowadays those mines are coming back on line.

and the paths that food and oil take to get to South Korea?

China doesn't.

 

[FairAndUnbiased]

Buy from the US. The US does have rare earth mines; they were deactivated when Chinese low-balled in pricing back in the 90s. Nowadays those mines are coming back on line.


China doesn't.

South China Sea?

Most non-Chinese rare earth projects doomed: consultant | Reuters

No country has the separations technology except China. Sorry. Even if the US tries to open its mines, all it will do is for its miners to ship raw ore to China, where it gets processed into pure metal.

 

[Bhairava]

Ouch.

Not only iPhone..It's the same with almost every other product that comes from china, except perhaps for the toys & RMG.

 

[Korean]

South China Sea?

China doesn't control South China Sea.

 

[FairAndUnbiased]

China doesn't control South China Sea.

That's why we can kill Vietnamese fishermen at will and cut their cables with no negative consequences within their own EEZ. So much for not controlling it.

 

[Korean]

That's why we can kill Vietnamese fishermen at will and cut their cables with no negative consequences within their own EEZ. So much for not controlling it.

And this is why India gets a naval base in Vietnam.

 

[FairAndUnbiased]

And this is why India gets a naval base in Vietnam.

It is planning to get a naval base. Doesn't have one yet. Even if it has, it'll just be a lone sitting duck.

 

[Bhairava]

And this is why India gets a naval base in Vietnam.

....And that is why TPP is being formed

....And that is why US is again coming to Viet Nam but this time as an ally.

....That is why India-US-Australia/ India-Japan-US (include SK also) trilateral engagements are going on.

....That is why all free-willed governments in the region (India,Japan,SK,Viet Nam, Phillipines) along with US must maintain close relations to prevent hegemony of one nation.

 

[ViXuyen]

That's why we can kill Vietnamese fishermen at will and cut their cables with no negative consequences within their own EEZ. So much for not controlling it.

And we continue to explore and drill oil not only in our EEZ but in the disputed Spartley and you can't do anything about it; not even dare to do anything to us when we ram your coast guard LOL

 

[FairAndUnbiased]

And we continue to explore and drill oil not only in our EEZ but in the disputed Spartley and you can't do anything about it; not even dare to do anything to us when we ram your coast guard LOL

that's OK, you ram, we kill, and we cut your cables, costing hundreds of thousands of dollars for poor bankrupt 20% inflation Vietnam.

 

[EastSea]

that's OK, you ram, we kill, and we cut your cables, costing hundreds of thousands of dollars for poor bankrupt 20% inflation Vietnam.

Chinese pirates are hunting like mad dogs in our sea.