Apple(APPL) has sold millions of its famous iPhone over the years with the most recent model iPhone 5 selling like hotcakes late last year although sales volumes was not as great as expected. In China, the company sold over 2 million units in the first weekend alone.
The iPhone 5 was designed in the U.S. just like so many other Apple products but assembled in China. However assembly costs account for only 4% of the total cost of an iPhone 5. The various components of an unit come from different countries as shown in the chart below. In fact, by one study 90% of a phone’s components are from countries outside of the U.S. Apple’s iPhone 5 is also a representation of the success the globalization and the East Asian electronics production chain.
iPhone 5 Component Costs by Supplier Headquarters Location and China Assembly Cost:
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Source: DHL Global Connectedness Index (GCI), DHL
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