China is the factory of the world, but how much value is it really capturing on the devices it produces? Marc Laperouza takes the 280$ iPhone example:

About 17 Taiwanese companies - none a household name - provide parts ranging from the camera lens to the battery charger. Japanese companies are responsible for printed circuit boards and the lithium ion battery. Then, there is the German touch screen, worth around USD 35, the Korean microprocessor chip - itself based on a British technology… In other words, while most components are produced in China, no wholly-owned Chinese company appears in the iPhone food chain. As a result, of the $280 manufacturing cost of each iPhone unit, less than 5% actually stays in China.

Link

A fresh perspective on the real place of China in the value-creation process.

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