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):
Something is not right with how we calculate these things.
Apple has internal transfer pricing which is dictated by accounting regulations and tax law.
Companies try and set transfer prices to minimize local taxes, but need to follow regulations.
A phone made in China is “purchased” by say Apple Canada for some fraction the price it sells for - regulation usually require the Value to reflect the cost of inputs.
So Apple Canada might purchase a phone from Apple China for $600 CAD then turn around and sell it for $1200 CAD in Canada.
It’s the $600 that counts as a Chinese export to Canada.
So if Foxconn is assembling a phone from components, they are paid for just that. The export is labor, not a fully valued finished phone.
No, I should have been more clear relative to original comment. I was pointing out even % Apple charge customs, i.e. imports from PRC, large % is still ultimately not value captured by PRC.
For full priced iphone, i.e. $1200, Apple captures or offshores another big slice of $800 in Ireland for intangibles like software related IP. But within the $400-600 BOM for physical device / import unit cost for customs, ~80% are western components, i.e. western value capture.