←back to thread

162 points TaurenHunter | 6 comments | | HN request time: 0.447s | source | bottom
Show context
randyrand ◴[] No.43580117[source]
The USA captures most of the value from selling iPhones worldwide, but yet the entire value of an iPhone counts only as a Chinese export.

Something is not right with how we calculate these things.

replies(4): >>43580160 #>>43580170 #>>43580198 #>>43580241 #
1. mysecretaccount ◴[] No.43580160[source]
iPhone sales don't count as a US export when calculating the trade deficit? Does anyone have information on this? Seems like a major issue indeed.
replies(3): >>43580204 #>>43580218 #>>43580243 #
2. thefounder ◴[] No.43580204[source]
Of course they don't because they are made in China. Do you think that Ford cars manufactured in Mexico count as U.S export?
replies(2): >>43580242 #>>43580426 #
3. jfim ◴[] No.43580218[source]
I was wondering the same thing and found this paper: https://www.sciencedirect.com/science/article/abs/pii/S10439...
4. sam_lowry_ ◴[] No.43580242[source]
Not only China but let us assume iPhones are made in China only.

China gets a modest share of the profits, because Apple pockets the rest. Reinvesting a fraction in US and stashing most of the profits in banks across the world that use this money as leverage to buy US bonds, among other things.

5. sandworm101 ◴[] No.43580243[source]
The physical phone is a "good" that is exported from china. But the majority of the value for an iPhone is in the "services" rendered to that phone, which may be sold/exported from the US but can likely be shifted to other countries in order to avoided taxation/tariffs.
6. tzs ◴[] No.43580426[source]
They are assembled in China. Most of the parts are made elsewhere and shipped to China.

Should the entire price of the phone count as a Chinese export?