« Made in China » = « Made by everybody but China »

As you can guess, the iPhone is manufactured in China. But in fact, it is made by everybody else but Chinese companies…

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 îs 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.

In fact, during the first 6 months of 2007, Chinese exports from solely foreign-funded and joint-ventures amounted to 84% of total IT exports… or close to USD 200 billion. And don’t forget that electronic information products account for 36% of China’s total exports of all products.

No surprise then that, in order to counter the supremacy of foreign multinationals, the government has designated integrated circuit, software and new type of electronic components as “the fundamental core sectors”, and new-generation telecommunication and high-performance computers as the “strategic growth sectors” for the 2006-2010 period!

3 thoughts on “« Made in China » = « Made by everybody but China »

  1. Pingback: Laurent Haug’s blog » Blog Archive » The 280$ iPhone and chinese factories

  2. nippotam

    Thank you for this value chain analysis.

    I have just one question where do you find those information about the suppliers and the prices of the iphone ?

    If you have any interesting links just drop an answer.


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