Here’s How Much Each Country makes from An iPhone 7
The iPhone is made in China, so most of the profit stays over there, right? Actually, everything in that sentence is wrong.
A new study finds that China makes less than $9 from each iPhone 7. Some of the rest goes to other Asian countries, but the lion’s share is earned by Apple and other U.S. companies.
To understand why, it’s critical to understand that iPhones are not made in China, they’re assembled there. The supply chain consists of companies in many countries.
The touchscreen, storage, CPU, and other chips come from Korean, American, Japanese, and Taiwanese companies. None of these parts are produced in China, according to CBS News. The only major component actually made in China is the battery.
Once all the components reach China, they are assembled into iPhones at Foxconn factories. Foxconn is a Taiwanese company, so any profits made don’t go to China.
China gets the blame, almost none of the iPhone profit
Of the money a consumer pays for a iPhone 7, just $8.46 stays in China. Japan makes about $68, Taiwan makes $48, and $17 goes to S. Korea. The U.S. makes $68 for supplying parts, and Apple takes in all the remaining sale price.
That’s not all profit, of course. Apple has to pay for marketing, designing future iPhones, employee salaries, etc. Still, the company made almost $14 billion in the first quarter of this year, so it’s not hurting.
The fact that almost all the components are supplied by other countries isn’t reflected when the iPhone 7 is brought into the U.S. Instead, the device is listed as a $240 import from China, skewing the figures for the U.S./China trade deficit.
Source: cult of mac
- Apple iPhone 7 Plus with Leaked Photos and iPhone 7's Packaging Box iPhone 7 Was Breached at Annual Mobile Pwn2Own Contest Pangu Jailbreak on iOS 10.3 / iOS 10.3.1 Could Release Next Week iOS 10.2 Yalu Jailbreak Now Supports All 64-bit Devices except iPhone 7 and iPad Air 2 Foxconn Employee Indicated that iPhone 7 Dual Cameras Could be Canceled iPhone 7’s Hardware Upgrading: 3100mAh Battery and 256GB ROM? $70 Fake iPhone 7 Plus vs $900 iPhone 7 Plus in Jet Black! iOS 11Patches Bug is Used on Crack Open iPhone 7/ 7Plus Passcode