Sunday, November 6, 2011

Apple vs. China value added

Ok, I saw some report of who benefits from Chinese manufacturing. We know it ain't labor. Well it ain't Chinese labor either. The beneficiaries are multi-national corporations.

Here are two research papers on where the value added is captured in the supply chain for apple products. An astounding 60% of the iPhone profits and 30% of iPad profits go to Apple. Potentially 5% of profits and 2% of labor costs go to China. That's about $10 per item for labor cost. The profit margins are insane.

You cannot make this up, you have to read it here. And here is an older paper here. We are talking pharmaceutical profits here !!!

No comments:

Blog Archive